When it comes to retirement planning and saving for the future, it’s no secret that women often face unique challenges.
Although the basic financial needs and timing for retirement are similar for both women and men, women especially can face a range of personal and professional challenges that can hinder their ability toward achieving financial security in retirement.
In fact, new research finds that women need to work an extra 19 years to build the same pension pot as men.
So, for all the ladies out there, this one’s for you.
Here we discuss the main reasons why taking control of your pensions and retirement planning is so important.
Longer Life Expectancy
Women typically live longer than men. It’s a fact. As of 2022, the average life expectancy was 78.6 years for men and 82.6 years for women. Yet, surprisingly, 33% of women don’t have a retirement plan in place. Studies show that women’s pension assets are less than two-thirds (62%) of men’s by their late 50s.
This means that women may need more retirement savings to ensure a comfortable and secure lifestyle during their later years.
Career Interruptions and Part-Time Work
Women often face career interruptions due to caregiving responsibilities or choosing to work part-time as a way of balancing their family and career. While these choices are important, they can affect your finances, especially your pension savings.
Many women worry about how time off for maternity or breaks from work might impact their retirement savings; it’s a common concern that’s totally understandable.
So, it’s good to know how much you’ve saved for retirement so far and figure out what ‘enough’ looks like for your future retirement lifestyle.
From there, you can be proactive and make the most of the savings that you do have and/or look to increase your contributions where you can.
After all, planning ahead helps you shape the retirement you deserve.
The Gender Pay Gap
Despite progress, the gender pay gap still exists and there is a long road to go. A recent survey suggests that to bridge the gender pay gap, women would need to contribute for an additional 19 years, or at a 6% higher rate than men.
When it comes to engaging with your pension, there is no set deadline. It’s never too late to figure out where all of your pensions are and how much money is in them, increase your payments, or consolidate them into a single account.
By actively managing your pensions and how much money you contribute, you can bridge this gap and make it easier to have financial equality in retirement.
Lack of Financial Confidence
According to Legal and General, women are 33% more likely than men to feel unsure about how their pension works, suggesting they may lack confidence in their financial knowledge.
If this sounds familiar, it could mean you’re less likely to stay on top of your investments and achieve the best results.
But luckily, we have a team of experts that have been planning happy retirements in Teesside for over 20 years.
With all these factors at play, along with additional family responsibilities, women often find themselves at a significant disadvantage in saving as much as men.
So, if you want the peace of mind that everything is going to be okay, to reduce stress, and get answers to questions like, ‘When can I retire?‘ and ‘How much do I need?‘, just a simple call is all it takes. So, why not reach out to us?
Tap here for a no-cost, one-to-one initial consultation.
Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People
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