It’s a fact: in the U.S., women live longer than men, on average. According to this NPR report, females can expect to outlast their male counterparts by nearly five years. If you’re a woman, that means your finances may need to be planned for and executed differently. Generally speaking, women may need more money than men, in order to support themselves for those remaining years.
So, how can you try to ensure you’re prepared for the future? Here are a few key strategies that can help boost women’s finances, depending on the age and financial situation.
Employer Retirement Plans
One of the best ways to beef up your savings may be to earmark a portion of your salary for an employer-provided retirement plan, such as a 401(k). Some women’s finances are impacted if they leave the workforce to care for their children or parents, which can create a gap in retirement savings. The earlier you can start contributing to a 401(k) or similar plan, the better you may be able to cope with the absences and greater savings needs.
If your employer offers a contribution match, you may want to take advantage of the full amount, so you have the opportunity to save even more money. This can help you build a solid foundation to tap into when you have health or living expenses.
Individual Retirement Accounts
Whether or not you have an employer-provided retirement plan, it can be a good idea to open an individual retirement account, or IRA. Not only do these accounts offer important tax benefits, but they also don’t have to be transferred if you change jobs. Depending on your choice between a traditional IRA and Roth IRA, you may be able to withdraw your funds once you’re retired or keep them there until needed.
In terms of women’s financial needs, IRAs can be especially helpful when it comes to supplementing social security and investment income. They are superior savings vehicles that may help you build a savings nest egg over time.
Long-term Care Insurance
Since women have longer life expectancies, they can sometimes have higher living expenses and medical bills as well. Long-term care insurance can help offset these costs, as long as you enroll before you reach a certain age or have certain health complications. Here’s an idea of how much health care may cost by the time you retire.
If you are near the end of your career or have already entered retirement, then there may be other strategies available to help you prepare or the future. Guidant Wealth Advisors specializes in women’s finances and helping women navigate their financial plan before and during retirement.
Reach out to us – we are happy to discuss your specific concerns.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.