Retirement Planning Tips for Women

Writer / Jill Griffith, AAMS™, CDFA®
Photographer / Lisa Cox Photography

Retirement PlanningWomen face unique challenges when planning for retirement. They may spend less time in the workforce and earn less money than men due to caregiving responsibilities. Additionally, women tend to live longer than men, which means potentially stretching limited savings and benefits over many years. To help manage these challenges, consider the following tips.

If You Haven’t Already Done So, Begin Saving Now

Start with a realistic assessment of how much you’ll need to save. An online retirement savings goal-setting calculator can help. If the figure is substantial, don’t be discouraged – the most important thing is to begin saving now. The chart below shows how just $2,000 invested annually at a 6% rate of return might grow over time:

Age you begin saving for retirement: Amount you could save by age 65:
20 $451,016
30 $236,242
40 $116,313
50 $49,345
60 $11,951


Note: This hypothetical example of mathematical principles is used for illustrative purposes only and does not reflect the performance of any specific investment. Results assume reinvestment of all earnings. Fees, expenses and taxes are not considered and would reduce the performance shown if they were included. Actual results will vary. 

 Save as Much as You Can

If you have a retirement savings plan available through your employer, like a 401(k) or 403(b), consider enrolling and contributing as much as possible. Your contributions are deducted from your pay and some employers will match a portion of your contribution.

Save for Retirement – No Matter What

If you’re a caregiver, you can still save for retirement. If you’re married, file your income taxes jointly, and otherwise qualify, you may open and contribute to a Traditional or Roth IRA, as long as your spouse has enough earned income to cover the contributions. Both types of IRAs allow you to make contributions of up to $7,000 in 2024, or, if less, 100% of taxable compensation. If you’re age 50 or older, you’re allowed to contribute even more – up to $8,000 in 2024.**

Plan for Income in Retirement

It’s realistic to worry about outliving your retirement income. Women should plan for a retirement that will last at least 20 to 30 years. They should also consider the possibility of spending some of those years alone. To ensure you have enough income to last throughout retirement, estimate how much you’ll need and find out how much you can expect from Social Security and pension plans. Set a savings goal, save regularly, and consider how you can protect yourself from long-term care expenses.

Understand These Important “Don’ts”

  1. Don’t Avoid The Planning Process

Retirement planning may not be your top priority but neglecting it now can impact your future. Staying focused on your goal of saving for a comfortable retirement is difficult, but if you put yourself first, it could pay off in the end. Additionally, seeking guidance from professionals in debt management Singapore can provide valuable insights and strategies to help you navigate your financial journey and secure a stable future.

  1. Don’t Rely On Your Spouse

Married or not, it’s critical for women to take an active role in planning for retirement. Consider that you may be forced to make important financial decisions quickly during a period of crisis. Preparing for retirement – or any financial goal – with your spouse could help ensure that you’re both well-informed when the time comes to make the critical choices.

  1. Don’t Prioritize Your Children’s Education Over Your Retirement

Many well-intentioned parents put their own retirement savings on hold while they save for their children’s college education. But if you do so, you’re potentially sacrificing your own financial well-being. Your children have many options when it comes to financing college – loans, grants and scholarships, for example – but there’s no such thing as a retirement loan.

  1. Don’t Neglect to Learn the Basics of Investing

If you’re unfamiliar with common investment terms such as diversification, asset allocation, and compounding, you can broaden your knowledge in as little as a few minutes each day. A simple web search can reveal hundreds of educational articles and videos. And remember, you don’t have to do it by yourself – a financial professional will be happy to work with you to set retirement goals and help you choose appropriate investments.

Retirement PlanningRaymond James & Associates, Inc., member New York Stock Exchange/SIPC

*There is no assurance that working with a financial professional will improve investment results.

**Roth IRAs impose income limits on the ability to make contributions. There are no such limitations on Traditional IRA contributions, which may or may not be tax deductible, depending on your income.

Jill Griffith, AAMS™, CDFA®

Financial Advisor

Certified Divorce Financial Analyst®

Raymond James & Associates

1530 American Way, Suite 230

Greenwood, IN


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