Women earn an average of 76 percent of men’s salaries. Does that
shock you? Yes, even in 2005, women are still way behind the
earning curve in corporate America. But rather than get into a
discussion of the fairness or unfairness of it all, let’s
concentrate on just what women can do to ensure that they aren’t
left out to dry in their retirement age!
After all, because women typically live seven years longer than
men, combined with the skyrocketing divorce rate, many women
will find themselves alone in their older years. (Statistics
show that most women are alone by age 56!) And the figures show
us that if a woman took out any time from her career to have
children (about seven years) she will pay for it later with only
50% of what her male counterparts will receive in retirement
benefits.
Sigh.
So, what can a woman do to ensure that she can retire in style?
Start by taking a look at some of our suggestions below.
Save More
Most experts advise us to save about 10 percent of our income in
order to have a sufficient amount to retire one, but if you are
a woman, you should be saving closer to 12 percent. Because of
the reasons listed above, you simply won’t receive the same
amount in retirement pensions. What’s more, the way that social
security figures your monthly payment is based on the top 35
years of your work history. But guess what? If you were out for
seven or so of those years having children, they will be counted
as “O,” and the overall amount will be reduced.
Invest Wiser
Since you will need to save more by retirement age, you will
have to more careful with your investments. Know your risk
level, and then don’t exceed it under any circumstances!
Join the Team
Many employers offer investment and savings strategies such as
401K plans and savings matching programs, and if you are a
woman, you should plan to participate in all of them that you
can.
Use Cash, Not Credit
An alarming number of Americans today are in serious financial
trouble. This was made evident recently with the passing of the
new bankruptcy bill that will make it more difficult to file. A
record number of people filed for bankruptcy in anticipation of
it.
It’s easy to get into debt when people today spend an average of
$1.21 for every dollar they earn, but don’t be tempted to fall
into that trap. Instead, plan to put as much money away for the
future as you can.
Don’t Go It Alone
While it is important for all women to step up to the plate and
get serious about their finances, it’s equally important for
them to get advice from professionals. Talk to tax planners,
investment specialists and budget planners to get all the advice
that you can.