Retirement Tips for Women Employees
According to statistics, the average woman reaches her retirement years 12 years earlier than the average man. One primary reason is that many women leave full-time employment to focus on their families or taking care of their children.
Ironically, while the average woman lives six years longer than the average man, she earns about $40,000 less per year or $300,000 less in her lifetime. That’s according to a study conducted by the Women’s Institute for a Secure Retirement (WISER), in Washington, D.C.:
And because women are naturally born to be loving and generous especially to children, they tend to share more of their earnings to the needy. Keeping these studies in mind, women need to realize that they must plan their finances and save up for retirement much earlier to secure their future.
So, how can you prepare for your retirement years? Consider the following tips
1. Delegate household responsibilities.
Doing all household duties on your own will you leave you with no time for yourself. It’s important for women to realize that the burden of doing house chores should not be placed on their shoulders alone. If your kids are old enough to do certain tasks, allowing them to take on a few responsibilities will give you more time for yourself – to do what enjoy and to make a living at the same time.
2. Stay employed.
Instead of retiring early or giving up your job completely, consider if you can stay employed for a longer time. Check out the possibility of telecommuting or working from home. You may have to bring up this special arrangement with your boss but and if you are regarded as a valuable asset to the company, your request can be granted.
3. Don’t withdraw from your 401(k).
When financial crisis arise, look for other alternatives to get out of the situation instead of withdrawing funds from your 401(k). If you are thinking about starting a home business, look for possible business financing solutions that will enable you to keep your 401(k) fund intact.
[Article: The Retirement Savings Contribution Credit]
4. Transition to a new career path.
Be aware of career trends and prepare yourself for a transition. In some industries, age does not really matter and you can skip retirement even if you are 65 or older. Continue to enhance skills and abilities that you can use once you make the transition.
5. Save your money.
Women are smart shoppers and you can use this gift to your advantage to build-up your savings. When shopping for clothing or any item for that matter, compare prices and use coupons whenever possible. Use your budgeting skills to cut back on your expenses and remember to set aside every single cent you manage to save to your savings account.
6. Contribute more to your retirement fund.
While you are employed, use the time to contribute as much as you can to your retirement fund. Put more on your 401(k) fund especially during times when you receive mid-year bonuses and incentives from your employer.
