Make Ends Meet: Women and Retirement
LOUISVILLE, Ky. (WAVE) - Right now, more than eight in 10 women approaching retirement say that achieving financial security is especially important to them, but only one in three believe they are likely to achieve it.
Those statistics are astounding and a little frightening if you are a woman preparing for retirement. So, what does that mean for women who have a dream of one day stepping out of the workplace and into a comfortable retirement?
AARP believes it is an opportunity to focus, learn and prepare. They started the “We Say Save It” campaign, which offers women resources and information they need to make ends meet when they are ready to punch the clock for the very last time.
Mary Liz Burns, Director of communications strategies at AARP, encouraged women to visit WeSaySaveIt.org, which provides information and resources to help women save 2%, or 2% more, of their income for retirement.
“Money means freedom and options,” stressed Burns.
When looking at savings for retirement, it means even more. What is saved prior to stepping away from the workplace will allow a person to maintain a standard of living in retirement until their end of life.
“You don’t necessarily know when that day specifically may come, but you want to have that financial security and cushion that you need,” proclaimed Burns.
Burns stressed women need to plan for retirement differently than men.
“There’s a huge retirement savings gap for women,” exclaimed Burns. “In fact, women only have about 70% saved that men have. We have to close that gap and there are small steps that women can take. Just even saving 2% of your income can make a big difference.”
Women on average live longer, make less, and are also more likely to take a break from their career.
“We found that over 1/3 of the women we surveyed even think they’re going to be financially secure in retirement,” expressed Burns.
Women must start somewhere, and the sooner someone starts saving, the more time money has to grow.
- Start saving and planning as early as possible
- Create a budget
- Save as aggressively as possible
- Talk to a financial planner
“Look at your budget,” stressed Burns. “Figure out not only where your money is going, but is there a way for you to save just 2% of your income for retirement. Talk to your employer. If your employer has any kind of employee retirement savings plan maximize it. Save. Contribute to it. Some employee plans actually have a match and that’s free money.”
Automate your savings so you pay yourself first. A portion of your pre-tax money is immediately pulled out of our paycheck and invested for your retirement. You do nothing but build your retirement nest egg with every paycheck.
“You’re worth it,” exclaimed Burns with a smile. “You are investing in yourself. You’re making money positive choices.”
For resources and information on how to start or build your retirement savings, click or tap here. The website will not provide advice on any stocks or funds.
People can also consider consulting a financial advisor to help with your personal savings.
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