Retirement is a big goal, no matter how far you are into your career. That’s why everyone needs to account for differences like healthcare needs, time in the workforce and more. Learn three reasons why women need to save more for retirement – and how to get there.
Reason #1: Women Tend to Live Longer
Science shows that women are more likely to live longer than their male counterparts. According to a recent report from the National Center for Health Statistics, the current life expectancy for an American woman is 79.1 years old, but men average out at 73.2 years. This means that you might be disposed to live longer – which is more time you need to live off your savings.
Living longer if you’re a woman has another consequence – potentially living alone.
That means not only will you have to pay to live longer, but any expenses shared with a spouse, like housing, will eventually be yours to take care of.
Related: How to plan for retirement in your 30s >>
Reason #2: Women Have Different Healthcare Considerations
If you’re going to live longer, it makes sense that you’ll end up spending more on healthcare. However, not all of that larger expense is because of your increased years.
Malito reports that women can expect to pay about 30 percent more on healthcare costs in retirement than men. A large piece of that is because women have a higher chance of developing a chronic illness. Not only that, but if your spouse predeceases you, there will be no unpaid caretaker to help you around the home.
The rising cost of healthcare means that if you’re a woman, you should take these statistics seriously. Besides saving even more money to anticipate these prices, you can choose to invest in a long-term care insurance policy.
Diane Bourdo, author of “Rewriting the Rules: Telling Truths About Women and Money” told Larry Light of Forbes that these policies might be pricey, but such insurance coverage can help you afford the care to maintain your standard of living.
Related: Don’t leave your retirement savings behind when switching jobs >>
Reason #3: Women May Have More Career Interruptions
Saving for retirement is important regardless of your gender, but women may need to save more in preparation for periods when they can’t work. Traditional gender roles mean that you may be more likely to face a gap in employment for child- or elder-care as a woman.
Since you’re not drawing a paycheck during those times, there’s nothing to contribute to a 401(k) or another retirement plan. And even if you stay in the office, Amber Kelly writes for Kiplinger, women are more likely than men to turn down promotions or more hours, as well as the extra money that comes with them, for a better work-life balance.
Wealth Management Planning Help
For guidance and advice, consider speaking honestly to a financial professional to ensure your golden years will be all you hope them to be.
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Published by Minster Bank
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