Is Retirement Different for Women?

In a recent interview, I was asked the following question: 'How is retirement different for women?' 

This was my answer... I think the main advantage for women is that we're more likely to have a supportive network of family and friends around us than men are. 

And I think that we're more willing to admit that we don't know things and to seek out help when we need it than men are. 

It's a cliche but it's a good example, that when women get lost when they're out driving, they stop and ask for directions. I'm sure many of us have experienced men who would never dream of asking for directions - they just carry on driving in the hope that they'll eventually find their way again. In the same way, I think that women are much more likely to seek out help and emotional support when they need it than men are. A recent report from the Equality and Human Rights Commission says that 'Women are outstripping men in a dozen different ways that mean their lives are often better than men's lives are'. It said women are more likely to be well-educated and more likely to look after their health by eating their five daily fruit and veggies and by visiting their doctor when they first start noticing symptoms. In contrast, men don't live as long as women, they're more likely to be overweight and they're three times more likely to take their own lives - presumably because they don't have those supportive networks to turn to. 

So there are advantages to being a woman that will work in our favour in retirement. 

The big disadvantage for women is a financial one, we're more likely to be poorer than men. Although we're more likely than our mother's generation to have had jobs, we're still more likely than men to spend our retirement in poverty. According to a recent report, over three-fifths of single pensioner households here in Britain - many of which will be single female pensioner households, have a total income of less than £10,000 and another, American, report from the Women's Institute for a Secure Retirement, said that more than 1 in 10 women live on less than $10,000 a year in retirement. 

There are several reasons for this poverty and they're all to do with being female: 

Women STILL make less money than men over the course of their working lifetimes, and we don't get as many promotions as men do 

Women are more likely to have worked in low-paid jobs or to have worked part-time. We are more likely to have had time out of the workplace due to raising children or looking after elderly parents, so we have fewer years to build up our retirement savings. At the same time, during that time that we are out of the workplace, we are also losing out on years of paying into a retirement plan - and if that comes with an employer contribution, we are missing out on the employer's contribution too. 

Most women who have children, have them during their most vital career-development years. Meanwhile, our male colleagues stay in the workforce, get promotions and climb the corporate ladder. When those women return to the workforce after the kids are in school, we are usually going back in at the same level that we left at years before, or, we find that our skills are obsolete, we are going back in at a lower level. So all this puts women further behind in our careers and further behind with our retirement savings. 

There are a couple of other things that contribute to women's potential for poverty in retirement. In addition to women generally earning less than men over the course of our lifetimes, we live longer, so any money we have managed to accumulate has to last us longer. 

Then we have the fact that women tend to take care of everyone else in the family before considering our own needs and so we tend to use the money to help someone else, rather than investing it for our retirement. We will help our kids out, or we will use the money to support our elderly relatives rather than sticking this into a retirement fund. 

And, finally, as far as investment matters are concerned, women tend to be more risk-averse by nature and therefore, we are more likely to be more conservative investors, which, of course, means that, by the time we retire, we probably won't have made as much money on our investments over the course of our working lives. 

Which is all a very long-winded way of saying, yes, I think retirement IS different for women... 

 Article Source: https://EzineArticles.com/expert/Ann_Harrison/33702

5 Actions Women Must Take to Become Financially Independent

I mean really, do you want to meet your worst fear of outliving your savings? 

I didn't think so! However, we're not off to a good start. Although more than half of all baby boomers are unprepared for retirement, women are falling behind at a faster pace.

 • The number of women filing bankruptcy is increasing rapidly, especially single women 

• According to Women's Institute for Secure Retirement, women's average retirement fund is about 2 times lower than the a man's average retirement fund.

 • Women tend to be unsure of the how much they have in their retirement accounts 

• Women are not as confident as men in their investing skills, and feel underserved by the investment community 

Women's needs are different than men's when it comes to preparing for retirement. Women live longer than men, earn less in their lifetime, and have less saved. This is a double whammy for women because not only will they need more, they have less opportunity to prepare.

Facing the reality and getting prepared today, whether that's by saving or by lifestyle reduction, is critical to avoid future disappointment. 

Here are five actions women can do now to begin shifting the way they think about money, start creating a sustainable future, and enjoy living more fully while making adjustments. 

1. Create a 5-Year Plan 

Having a clear picture of life in 5 years is critical to actually making it happen. Of course a vision for 10, 20, 30 years is necessary too, but 5-years is a solid time frame from creating goals and action steps. When creating a 5-year plan multiple areas of your life should be considered; health, relationships, career/business ventures, community, travel/leisure, legacy, etc. are all necessary to have a balanced life plan. Remember, if you do not have clear goals, you will not have much chance of actually attaining them. 

2. Be Willing to Make Changes 

When you commit to achieving your 5-year goals, guess what? Your life will have to change. You will find that you need to spend your time differently, use money differently and perhaps change your relationships. Why? Because if you don't, and you keep doing what you're doing, do you think you'll achieve your 5-year plan? If everything was already on track, you'd already be living those goals. So, in order to achieve them, you must do things differently. It's not uncommon that if one is serious about achieving their goals that their lifestyle changes. Sometimes downsizing while investing in a new business, or leaving a stagnant relationship, or spending time getting educated or researching areas that will help them achieve their goals.

3. Master your Cash Flow 

Understanding how wealth building works is critical, and it starts with mastering your cash flow. There are two elements to cash flow that must be mastered; your income and your expenses. Often when addressing money you'll hear ways to reduce your spending or stay within a budget. But that's only part of the equation. Mastering your income is just as important and managing your expenses. In fact it's even more important because you can only cut back expenses so far, but you can increase your income infinitely. But, the key is making sure that you have positive cash flow, where you are spending less then what you are bringing in. You can't build wealth if you don't have positive cash flow. And don't forget, if you're not planning for your future now, then you're not living within your means. Living within your means has to include saving for your future. 

4. Understand How to Build Your Net Worth 

Your net worth is the difference between what you own and what you owe. What's left over is your net worth. The way you build your net worth is by having positive cash flow. When you have positive cash flow you can only do two things with it; 1) increase your assets, or 2) decrease your debt. Either way, your net worth increases. It's just like weight loss. In order to lose weight you can either increase your exercise, or reduce your calories (or both!). Once you understand this core concept then you can make decisions about the best placement of your excess cash flow. For example, would it be better to pay down debt, save or invest? Answers to questions like this depend on your 5-year goals, and the amount and type of debt you have. With a clear 5-year plan, you can choose the method that will help you achieve your goals the fastest and safest.

 5. Work Your Plan 

The biggest problem with creating a financial plan with an advisor is the lack of implementation. Everyone I've talked to who has paid for a financial plan says it's still sitting on their shelf. That won't happen to you because you are going to create the plan yourself, and you are going to work it regularly, right? Create an accountability system that will help you stay focused each week, and take small steps consistently. Femvestorsglobal discuss any concerns that come up, and to help you stay on track. Following through and becoming disciplined is what will allow you to see success. Commit to being a success and don't stop when things get difficult. We build a support system that you can rely on. 

So, to be financial independent and avoid financial poverty, make sure you start making the necessary changes today that will build long-term financial sustainability. Paint the picture of success for yourself and take regular steps toward it. Face the reality, address any disappointments you might be holding onto, and begin an exciting new journey for yourself. 

Article Source: https://EzineArticles.com/expert/Angie_Grainger/1086314

Financial Freedom for Women

Finance management is something that comes naturally to most women. 

It has been accustomed to that while men work, we handle the finances of the household.

It comes with the patience and fortitude that most men are not gifted with. 

As such, the search for financial freedom hits us way before it hits men.

While men think of just providing for the family, we think of how to make the budget fit. And so, financial freedom for us comes differently. 

We aim for the more profound things. 

Our children's education, having enough to sustain our needs, and hopefully having more to fulfil our wants. 

We often think of making the finances fit according to our lifestyle. 

Some families have financial sources from both parents, others just from the fathers.

But what about those who raise their kids alone? 

What about those marriages that end in divorce? 

We should be able to provide for our children even when the marriage ends in divorce. 

we need to have more than just a day job to achieve financial freedom.

But although it is not something that happens overnight, it still is something that can be achieved with patience and endurance. 

Financial freedom for women is up for grabs for those who trust themselves enough to believe that they can have it. 

Regardless of how bad your finances are right now, you can still pull yourself out. 

You can still shake all those unwanted financial strains and be worry free. 

Here's how:

1. Know your financial status. This includes everything you have and not just cash. Think of what you own versus what you owe. This will help you balance your finances. 

2. Evaluate your credit history. Assess your credit limits and how often you go overboard with your spending. Take note of what makes you overspend. 

3. Make reasonable financial goals. Do this in relation to your dreams, your responsibilities, and your priorities in life. Make your goals achievable and measurable.

 4. Create an investment plan. This is so will have an idea of how to correctly allocate your assets in relation to your current financial situation.

 5. Make investments as often as you can while it's still early. The earlier you invest, the sooner you get a return on investment (ROI). This conveniently allows financial freedom to be achieved in no time. 

6. Make the most of tax-advantaged retirement accounts/plans. This will help you earn more because you are likely to spend less on taxes. 

7. Protect your assets. Plan your estate wisely. As much as possible, make your kids your beneficiaries in order to secure their future.

8. Keep yourself informed. Learning is a never ending process. Be updated all the time. 

9. Fulfil the eight steps. With these easy steps, financial freedom for us is not that impossible to achieve. 

Just like any other goal, there must be a plan of action and the ability to put this into action. 

If you could make the time to implement these changes, you will be free from financial stresses in a reasonable amount of time.