The number of working women in the US is significantly high, but females are often less conscious about retirement planning. While you have the same opportunities to save, invest, and borrow as your male counterparts, limited knowledge can hinder good financial planning. Whether you are working or stay at home, you must pay extra attention to saving up for retirement years so that you can be secure and financially independent at this stage of life. Here are some strategies that financial experts recommend.
Start Saving Early
The best advice for men and women who prioritize financial security is to save when they are still young. It is even more crucial for females because maternity breaks and sporadic professional runs can lower your savings during the working years. Sign up for your employer’s 401(k) and contribute as much as possible. Alternatively, you can open a Roth IRA. Self-employed or part-time workers must not miss out on retirement accounts.
Have a Spousal IRA
Experts recommend that even stay-at-home mommies with no outside income should have retirement savings. Fortunately, you can do it if your spouse has a paying job. He can contribute to a spousal IRA on your behalf, which means that you can save for later years even without working as a professional. The best part is that you can maximize savings as a couple yet have complete control over money if something unfortunate happens to your partner.
Buy Long-Term Care Insurance
Women often invest attention in the family’s well-being and overlook their own. It is important to have long-term care insurance to cover the in-home, assisted-living, or nursing home care costs. If you reside in Tennessee, you can seek guidance from a retirement planning advisor in Nashville to understand how the coverage works. Married women can opt for a shared-benefit policy that offers benefits either spouse can use. Rates can be higher for women, so it makes sense to buy as a couple.
Get a Share of Your Partner’s Pension
If your partner is eligible for a pension, you are rightfully entitled to a survivor benefit. It means you will be secure even after your spouse’s death. However, taking a survivor benefit will cut the amount your partner gets during his lifetime. You may skip the benefit if you have your pension account. It will enable your partner to avail of the full benefits of his pension during his lifetime.
Be the Primary Beneficiary on Your Spouse’s IRA
Ensure that you are listed as the primary beneficiary on your spouse’s IRAs because it will entitle you to the amount therein. You must know that beneficiaries on retirement documents take precedence over the persons named in the will of the deceased. It is vital to review and update the retirement documents to make sure that your partner’s IRA does not list his mother, ex-wife, or kids from a previous marriage.
Retirement planning can get tricky for women, whether you are working or dependent on your partner. It is best to seek expert advice and have the right arrangements that keep you financially secure in the twilight years.
