A Guide to Retirement Planning for Women

Retirement planning is a crucial aspect of financial wellness, and retirement planning for women should reflect the unique circumstances women face. In this blog post, I discuss the key factors that women should keep in mind when preparing for their retirement. From longer life expectancies to career interruptions, these tips will help set you on track for a successful retirement.

1. Longevity and Life Expectancy

Women live an average of seven years longer than men. This means that women need to plan for a significantly longer retirement period. When calculating how much you want to save for retirement, be sure to factor this in. You want to invest enough for your retirement to have a sustainable income for the rest of your life. Remember that healthcare costs go up as we age, too, so you'll want to factor that in as well, including any potential long term care costs.

2. The Gender Pay Gap

Yes, we're talking about the gender pay gap again! Why? Because it affects so much of our lives. White women earn an average of 80 cents for every dollar a man makes, and it's even worse for women of color. When you factor in longer life expectancies, this means women have to make more out of less. In order to minimize the impact of the gender pay gap, women should negotiate their salaries and invest wisely for their retirement.

3. Career Interruptions

Many women experience career interruptions due to maternity leaves or other caregiving responsibilities. Unfortunately, the longer new mothers are away from paid work, the less likely they are to be promoted, move into management, or receive a pay raise once their leave is over. Don't be afraid to advocate for yourself upon your return to work after a maternity or other leave, and don't underestimate yourself either. Just because you took a leave doesn't mean you shouldn't apply for that promotion or negotiate a salary raise at your next annual review. A temporary leave does not negate the long term value you bring to the company.

4. Financial Literacy and Education

There's a gender gap in financial literacy. While the gap is closing, women continue to have lower financial literacy scores than men. UNBROKE is here to change that! Investing in your financial literacy is investing in yourself. The best part? You'll be able to turn the knowledge you gain into actual dollars in your bank account. Trust me, future you will thank you.

Retirement planning for women should be specific to women's unique circumstances. By addressing these uniquely female challenges, you can secure a financially stable and fulfilling retirement.