Women And Retirement

Women and the importance of planning for retirement.

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Women and Planning for Retirement

Women tend to face more problems than men when it comes to preparing for retirement.

On average, women in the workforce tend to earn less, have lower job security and live longer than men. Making it vital for women to start planning for their retirement early in life.


By now it has probably been drilled into your mind how important it is to save. Well, retirement is no different especially for women. As mentioned before women tend to live longer than men, which means women need to plan more effectively for retirement.

Start saving as soon as possible. Start off small and save more as your paycheck grows. For example, if you were to start saving $100 per month starting at age 25 with an interest rate at 6% by the time you turn 65 you will have saved around $200,000. As you can see savings can really add up!

One good idea would be to make your deposits automatic. Setting up an automatic deposit from your paycheck is one less step you would need to worry about when saving for retirement. A second idea, may be to work as long as you are able to. Having a longer career will allow you to save more money for retirement, and gain more Social Security benefits.


Saving and having a budget go hand-in-hand, both are essential when planning for retirement. Creating a monthly budget will help you see where your money is going and where you may need to cut back on spending.

A retirement calculator is one beneficial tool to help you figure out how much you will need when it comes time for you to retire. Also, the Credit Union’s Financial Advisors are always there for you whenever you have questions about your retirement plans.

Get out and stay out of Debt

Debt is a heavy weight to bear when it comes to retirement. Debt is one factor that may be setting women back from retiring comfortably. Try and pay off high interest rate credit cards and personal loans that are weighing you down.

Make a strong effort to stay out of debt, you want to be able to protect your retirement savings, and not borrow against it. After all, you worked hard to earn that money so you should try your best to keep it there.


Sometimes things don’t always work out and that’s fine, you are not alone in this situation. If you did not have a retirement fund before or during your marriage, now would be a great time to start one or continuing to contribute to your retirement plan. One option maybe to see if your employer offers a 401(k) or talk to your Financial Advisor about opening an Individual Retirement Account (IRA).

It is possible to receive benefits from your ex-spouse’s retirement plan. However, certain rules apply and you may want to consult with your attorney and or Financial Advisor.

Death of a Spouse

Knowing your spouse’s retirement plan is important if your spouse passes away before you. In most 401(k) plans the benefits of your deceased spouse will automatically be given to you. Generally, the majority of 401(k) plans are written so certain protections are applied for surviving spouses.

Saving for retirement is important no matter who you are. Women face unique issues when it comes to planning for retirement. It never hurts to stay on top of your finances and plan for the future!