It’s terrible but true: acquiring financial stability is more difficult for women than for males. That implies you might have to put forth a little additional effort.
What is the intensity of this challenging task? For one thing, there is still a wage disparity between men and women, with women earning approximately 82 cents for every $1 earned by males, as per the Census Bureau. According to an Edward Jones/Age Wave analysis, the salary discrepancy equates to approximately $470,000 in lifetime earnings.
According to the report, when you consider the professional disruptions women endure as a result of taking care of kids and aging parents, that $470,000 is becoming a $1.1 million lifetime earnings discrepancy. Lastly, because women live longer than men, their overall income must endure longer as well.
Everyone’s case is unique, but these statistics at least highlight the difficulties that many women face. Consider the following suggestions to assist you:
First And Foremost, Pay Yourself
You should always pay your own expenses — but you may also pay yourself by transferring money from your savings account to minimal risk, liquid vehicle each month, including a money market fund or a cash management account linked to your investment strategy. This action can help you build up a “bucket” of cash that you can utilize for any purpose, such as taking time off work to care for children or elderly parents.
Check Your Social Security Benefits
Since Social Security offers a lifelong revenue source that incorporates cost-of-living adjustments, this can help you manage two major retirement risks, that is, longer life expectancies as well as inflation. You can begin collecting Social Security at the age of 62, but if you wait till your FRA, which is expected to be between 66 and 67, your monthly checks would be much greater. If you wait until you’re 70 to start receiving benefits, your payouts will rise by 8% per year until you reach FRA. You must also study spousal and survivor payouts, as they can alter the amount of money you receive.
Consulting with a financial specialist, who can assess your circumstances, offer recommendations to clients, and answer concerns like “What changes can I make so that I can manage to become a caretaker for an older parent?” may be beneficial.
Hopefully, there will come a time when women will no longer have to play catch-up financially. For the time being, though, use all of the tools that are available to assist yourself.