Saving Strategies for Women to Protect Money for Retirement

As per a research by George Washington University, women today are financially fragile due to soaring debts and low savings. If you too are entering your 50s and want to salvage something for your retirement fund, refer to the tips below. Here we’re giving you the whole nine yards in a bid to plan a secured retirement.

Happy senior woman

Prepare for Hefty Healthcare Expenses

Health-related issues and risks increase as a person grows older. Retirement is a sensitive phase in which your health needs your utmost attention. Frequent hospital visits or medical emergencies have the potential to wipe out all your savings unless you have health insurance. A health insurance policy covers the incurred expenses in emergency hospitalisation, and assists in paying the pre and post medical expenses. It keeps your lifetime savings safe.

However, most people don’t consider buying health insurance as they rely on their employers’ health insurance. They usually forget the fact that their employers’ health plan covers them as long as they’re working with that organisation. Moreover, very few companies offer retiree benefit. Hence, individual health insurance is a must. Furthermore, there is no point in buying a random plan as it might simply backfire. Here’s why you ought to compare health insurance before buying a plan. Online comparison helps you save money by comparing the premium and benefits and assists in bagging the best deal.

Play Safe with Social Security

Though Social Security can’t fund your retirement directly, it can help you pay the bills. By playing little smart, you can save on social security as well. Rather than taking all the benefits of Social Security at a time, you can hold them to earn interest. By holding your benefits up to the retirement age, you’ll be able to boost the amount by 8% in a certain number of months.

However, the only catch is that you’re eligible to earn the incentives up to the age of 70 only. Delaying the benefits past this age will not help you. Nevertheless, after you hit 70, your Social Security checks will be fatter than before.

Work for a Longer Period

Many of us have a tendency to leave our full-time jobs as the retirement age arrives. However, if you continue your career further, you will get to collect the salary cheque for a longer period of time. This way, you will be able to boost your savings and can save the benefits of Social Security for future use.

Whether you choose to do a part-time job or a full-time gig, retirement offers plenty opportunities to generate income from. Therefore, do utilise these opportunities and save your retirement funds for a rainy day.

Have You Considered Inflation?

With the rising inflation, the purchasing power of every dime is shrinking. If you are living on a fixed income until your retirement, you might face financial difficulties in your retirement years. So, if inflation is increasing by 3% every year, something that costs $100 now will cost around $181 in 20 years. Naturally, when you sit down to plan your finances, keep inflation in mind.

Retirement saving and pension planning

Purchase an Annuity

Another way to keep your retirement days safe is to invest in an annuity. You can pay more now and eventually get inflation adjusted in your annuity checks.

To ensure that your money lasts, go for low-cost, immediate annuity along with Social Security or a pension that covers fixed retirement expenses.

Calculate Retirement Corpus Right

Studies say that women tend to live 5-7 years longer than their male counterparts. It means that if you outlive your spouse, more retirement funds will be needed by you. Therefore, it is better if the longevity of the retirement kitty is linked to your life expectancy, not your spouse. This will help you enjoy the corpus benefit for comparatively a longer time.

Confirm if you are the nominee in investments

Don’t shy away when it comes to taking important financial decisions. Instead of leaving all the investment-related decisions to your spouse or someone else, take the matters into your own hands. Even if you’re a pro at handling investment jargons, at least you can start from the basics and learn on the go. You should know where your money is being invested, how much return will be earned on maturity, what are the related documents etc.

Another thing to check is if your name is mentioned as a nominee or as the joint account holder the investments. This will help you track the utilisation of money during a financial crisis or in case of untimely demise of your spouse.

It’s Your Turn Now!

Once you amass some savings for retirement, especially when you approach your 50s, you’ll want to protect it more. To enjoy a comfortable retirement, you need a strategic financial plan. Things like ever-rising quality healthcare costs, inflation, soaring investment fees or a financially dependent family member can pose a major threat to your financial well-being. Only with a proper strategy can you squeeze more out of your savings while on a pay-check.

If you too are a working woman and are willing to plan for those golden days, consider and follow these strategies. Remember, it is better late than never!