Every individual’s situation is unique when planning their financial future. Different considerations are needed based on different circumstances – income, age, debt, etc. There are unique circumstances that many women may face when planning for retirement years.
Women live longer than men, are more likely to take time from the workforce to raise kids and a recent Forbes article
mentions the divorce rate for people over the age of 50 has doubled in the last 20 years.
In her article “6 Do-It-Now Retirement Moves for Women”
Judith Ward says, “…chances are women will spend more time in retirement flying solo.” Here are a few of the ideas Ward suggests women consider when planning for life after working:
Pay yourself first, in tax-advantage accounts if possible. Participate in company sponsored retirement plans, such as a 401(k), especially if they provide a matching contribution. Also, consider a Traditional or Roth IRA.
If you are out of the workforce, consider a Spousal IRA. If you are married, it is possible to open and contribute to an IRA even if you don’t have earned income. People often assume if they aren’t working they can’t contribute to an IRA, but it might be possible to qualify for a Spousal IRA.
Living longer means you might require more planning with Social Security. Knowing that you might live longer could impact when you begin taking Social Security and how much. It would be important to consult with a financial professional to help determine the best tactic for your unique situation.
If you have questions about self-directed retirement plans, submit them here
and an Equity Trust Senior Account Executive will contact you.