Oct 2020 Blog: Why Women Can’t Ignore Retirement Planning!

Why Women Can’t Ignore Retirement Planning! 

Agreat retirement, sailing off into the sunset, is the just reward of every American in the work force. We work hard so that one day we don’t have to anymore. A key ingredient to an amazing retirement is planning. Unfortunately, for women that dream may be very far off from becoming a reality. According to Fidelity Investments, only 4 out of 10 women have a retirement strategy and only 15% of those women have formal retirement plans. Women have been forced into at this disadvantage by societal conventions and forces they may not even be aware of. Yet, there are some simple steps you can take today so that you can have a blissful ride into the sunset.

How did women get behind the curve?    

Retirement planning has been a blind spot for women when it comes to their financial independence and well-being. Women have been raised for generations to believe that their finances where better left in the hands of others. A recent 2020 report by UBS Financial Services showed that 49% of women defer their planning to a spouse. 67% of those women polled believe that “men just know more” and are more adept at handling money. These ingrained beliefs lead to women actively ignoring their retirement planning. The result is 8 out of 10 women finding a financial surprise when they finally have to face their finances alone.

Unfortunately, financial neglect is not the only roadblock women face. Women are oftentimes victims of the “Mommy Penalty Box”. While making great strides in higher education and the workforce, women eventually face the “Catch 22” situation of having to decide between their career or caring for their children. Due to the lack of adequate childcare, women oftentimes leave their careers at crucial points to stay home. Monetarily, this represent an estimated $320,000 dollars in lost wages and subsequent retirement savings. There is also no accounting for the lack of advancement this represents or loss of future income. Many times, mothers are deemed to be uncommitted to their careers and, therefore, paid less and offered less opportunities for promotions.

How can you catch up?        

  • Automate your retirement contributions.
    • If your employers offer a 401(k) or other retirement plans, take advantage of this and set up a direct deposit to these accounts. You can also do this with Individual Retirement Account or IRA’s if you are not saving in a company sponsored plan. Set it, forget and let it grow.
  • Learn about the various retirement planning options that you can take advantage of by SIGNING UP for the FREE – EMPOWERED WORTH RETIREMENT PLANNING WORKSHOP.
  • Get the confidence you’re lacking by taking a personal finance and/or investment course.
  • START TODAY!

We all dream of that day when we can hang it up and enjoy the well-earned fruits of our labor. That dream might mean traveling to parts unknown, going fishing or just sitting back and enjoying our families. Regardless of what your dream is we are all responsible for making sure that we can have it. The best way is to do that is to take act today and start planning for retirement. In the end, it needs to be in our hands what we make of those dreams.

REMEMBER: 

EMPOWERED WORTH is here to help you with your retirement planning. We are here to give you the know-how and confidence to take your seat in the planning process. Sign up for our FREE RETIREMENT PLANNING WORKSHOP this October. Start to take control of your securing your future.