Why Women Need to Save for Retirement

Why Women Need to Save for Retirement

There are many times in life when women should do things differently from men. Even if you don’t think that men and women are inherently different, society treats them like they are. Money and earning potential is one of the areas where women are often at a disadvantage. Everyone has to retire some day, whether it’s because they’re ready to or because of ill health. Saving for retirement is essential so that we all have the money to support ourselves. Unfortunately, women often don’t save as well as men do. There are several things that can make it harder for women to save for retirement.

Women Live Longer

On average, women live longer than men. The global life expectancy in 2013 was nearly 4.5 years longer for women. In some countries, women can live between 5 and 10 years longer than men do. Although living longer might seem like a good thing, a longer life also comes with extra expenses. One of the things to keep in mind is that someone who lives further into their old age could have more medical costs. You might live for 5 more years than your husband, but will those years be spent in an expensive nursing home? Women should be particularly careful about saving for retirement for this reason.

Women Earn Less

Though many people will try to debate it, studies have shown that women earn less, even when doing the same work as men. On top of that, women are more likely to work part-time or to do certain unskilled labor. While the numbers are improving, it’s still a concern that women should be aware of. Making sure that you try to save for retirement while you’re working is essential. An Nationwide Super account or another pension fund will help you take your retirement savings into your own hands. Saving into a pension can be hard, but it’s easier if you can find an account with low fees.

Women Can Sometimes Take the Financial Backseat

All too often, women let their husbands or partners take the reins when it comes to financial matters. Many couples now divide everything more evenly, and you should ensure that money is part of that. One of you might manage everything day-to-day. But it’s important that both halves of a couple stay up to date on their finances. You should ensure that you work together on financial decisions. You should both understand any investments and savings you have. It’s especially important because women are more likely to be widowed.

Women Are Likely to Have Long Employment Gaps

Women are also still more likely to take time off work to care for children or perhaps to care for elderly relatives. These employment gaps can make saving for retirement difficult. However, being out of work doesn’t mean you can’t save for retirement. You can work with a financial advisor to come up with a plan to help you prepare for any circumstance.

Make sure you’re saving for retirement, no matter how old you are. If you’re not sure what to do, meeting a financial advisor can help you out.

Image from Flickr courtesy of American Advisors Group.

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