Five facts that threaten women’s retirement income

Five facts that threaten women’s retirement income

In this day and age where women are advancing in careers and business ownership, and experiencing success their predecessors only dreamed of, they still lag behind men in one key area: saving and planning for a financially secure retirement.


Due to the longevity factor, we women are at risk of experiencing a financial shortfall in retirement. In other words, we risk outliving our money.


The five primary economic and social factors that threaten the financial security of women in retirement are:

  1. Women’s lifetime income is less than men’s due to the fact that they take time out of the workforce to care for loved ones. Which means they don’t get to enjoy the financial increases over the life of their careers that men do.
  2. Women tend to work part time – or not at all – in order to stay home with the kids.
  3. Therefore they contribute less to retirement savings and earn less Social Security benefits, which translates into lower retirement income.
  4. Statistically, women outlive men, which means they need more money to live.
  5. Because women live longer, their cost for healthcare (i.e. long term care) is more expensive than men’s.


As pervasive as these factors are regarding women’s financial security, there are ways to mitigate them.

Here are four ways women can improve their financial security for retirement.

  1. Start saving as much as you can for retirement right now. Take advantage of workplace retirement plans. Visit your HR department and arrange to begin payroll deductions. If you already contribute, increase the amount.
  2. Start saving after tax dollars as well. This way you can create tax-diversity in your retirement income. The last thing you want is to have all of your retirement income be at the mercy of future tax rates.
  3. Take a look at your monthly expenditures to determine where you can find more money to save. Make a decision to cut way down on expenses today in order to save more for your future. Your future self will thank you profusely.
  4. Get educated about retirement planning for women. Learn about all the various ways you can save for retirement and make your retirement savings last longer. Even if your husband “handles all the finances.” Like anything else, two heads are better than one. If you’re a single gal, find a financial professional you feel comfortable with and let them help you create a plan.


Ladies, don’t wait to take charge of your finances. I’m sure you could come up with plenty of excuses to justify not taking action today: too busy, don’t know where to turn for help, don’t know how to get started or you think you have plenty of time.


However, the bottom line is that these are all just excuses covering up the real reason we tend to feel timid about taking charge of our finances. We women tend to be afraid of experiencing uncomfortable feelings that may surface around money.


But fear of the unknown doesn’t need to hold us back from taking the all-important first step.


[shareable cite=””]The wisest thing a woman can do is take care of herself by creating a secure retirement plan. [/shareable]


The wisest thing a woman can do when it comes to taking care of herself financially is to make a quality decision to create a secure retirement plan, feel the fear and do it anyway.


Let me know how I can help.




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