The differences between women and men have gone up to retirement and planning for it. Therefore, women have to consider far more things than men when it comes to preparing for the future. Here are things that when it comes to women and retirement:
Women live longer than men, which means women need to fund their retirement longer than what men need to. Women’s retirement savings should be able to cover extended years of expenses and healthcare costs.
Because women are more likely to live longer, they are more likely to face a higher healthcare tab. Other factors that women need to consider contributes to why this can be very challenging for women to face during retirement.
A recent study from HealthView Services estimates that a 65-year-old woman will pay 20% more – or about $35,000 more — for health care during retirement than will a 65-year-old man.
Women have fewer savings than men which might be due to lesser income and retirement benefits when they are still in the workforce. This can be a problem as women are most likely to live longer.
Due to the role of women in our society, they are the one who usually stops working when someone or something needs to be taken care at home, like taking care of children or a loved one. Going back to work is hard as if no one would like to welcome them back. Work experiences are very important today, and the time or even years spent in taking care of family is sad to say, cannot be considered as part of work experiences.
Again, because of different life expectancy, women tend to be the one left out by their partners. Widows outnumber widower in almost every country making them a much higher proportion of women living alone.
Knowing what to consider in retirement will help women plan accordingly, these tips from various experts and blogs will help direct them more towards the right path:
Women’s Institute For A Secure Retirement (WISER)
Having a realistic plan to cover health care expenses in retirement is crucial. WISER recommends that women have a cushion to help weather inflation, high health care costs and their longer lifespan. We suggest that women plan to replace 100% of their income in retirement, rather than the 75- 80% recommended by many financial planners.
Look into buying Medigap insurance. Medigap policies are private insurance policies that pay a portion of out-of-pocket medical costs not covered by Medicare. Private Medigap insurance can help seniors afford higher medical costs.
Dover Healthcare planning
One way that women may be able to limit their spending is by choosing less expensive and slightly riskier coverage. Choose a less comprehensive, less expensive Medigap plan. Plans L and N are sound choices, and people in good health will usually save money in these two plans. (See our Medicare Supplemental Plans comparison charts here.)
Factoring in rising health care costs is an essential part of the retirement planning equation. It takes even more priority for women, who face higher health care expenses as they grow older.
Medicare can be a help with managing health care costs in retirement, but there is a financial toll associated with this coverage.Understand the financial implications of Medicare.
Plan now for long-term care and Social Security. Long-term care can add substantially to your health care costs in retirement and women should think about insuring against it.
Studies indicate that healthcare will be the biggest expenditure in retirement., especially for women. Secure the best long term care coverage possible, so you can reduce the risk of running out of money in retirement.
Lifespan, Money, and Job
A household budget is a major part of the level of personal responsibility necessary to obtain a secure retirement. It never ceases to amaze me how people don’t budget, don’t find the inner ability to discipline themselves to organize their financial life and then wonder why their golden years are not so golden. So, don’t look at budget as a dirty word. Instead, look at it as your plan to change your life.
Take advantage of what your job offers. You need to be taking advantage of these benefits now because you do not know what the future holds. If your company matches retirement contributions, take full advantage of it. Even if you don’t get retirement benefits from your company, you can still open up an IRA and contribute on your own.
Start saving ASAP. No matter how young you are, it’s never too soon to start planning for retirement. Waiting for the right income level can shave years off your retirement savings potential. No matter what you earn, and no matter how little you can save, begin now. You can always increase the percentage when you earn more.
Find out if your employer has a financial wellness program, such as brown-bag lunch talks about debt-management or investing. These kinds of gatherings can ramp up your money mojo in a low-stress time-sensitive fashion. You can also ask Human Resources if your employer might consider offering them.
Get strategic about Social Security. As women tend to live longer than men, it’s especially important to consider how Social Security benefits fall into your retirement income plan. Just because you can begin benefits as early as age 62 doesn’t mean you should.
You don’t have to be wealthy to feel worthy of prioritizing your retirement. Taking an active role in planning for your retirement is about believing in you—and your future financial security.
On living alone
Aging is difficult to navigate and manage, that’s why it’s important to begin early on so that any new health challenges won’t distract one’s planning. If you’re like me, a single, older woman, living alone, my advice is to get your legal matters in place. Start with the Five Wishes; a popular living will that’s written in everyday language and easy to understand. Also, what I’ve discovered through the Elder Orphan Facebook Group, if individuals don’t maintain a purpose in life, she becomes depressed and loses inspiration and meaning over time. It’s the reason I started the weekly newsletter, Age with Purpose. It offers insights, tips, and information on wisdom, health, jobs, activities, and learning new skills. She will love it!