Saving for retirement is usually considered to be a challenging task by most individuals. It should be a top priority for investors. This holds especially true for women. Why, you may wonder. It’s simple – women tend to live longer than men. What’s more, women are usually not paid equally as their male counterparts for the same amount of work achieved. Yes, we are talking about gender pay gap bias. A recent study by AARP Public Policy Institute states that it is twice as likely for women to live in poverty after the age of 65 as compared to men. Lower participation rates at workplace, lower incomes, longer average life expectancy, and higher medical costs are just a few barriers that prevent women from saving for their future. However, despite these hindrances, it is never impossible to save for retirement.
Being financially independent is the key to dignity and happiness for the modern women. A woman typically has multiple roles to play out in her life such as being a caring mother, loving wife, and working professional. Irrespective of the fact that she is a working professional or a home maker, she is married or unmarried, financial stability will offer her with much needed assurance and stability. It’s a well-known fact that women are better at managing and handling money and saving enough for their future.
Homemakers that are financially dependent must take an active role in the financial planning of the family. The first step is to come with peace on the realities of life such as divorce or loss of life of their partner. If you are a single woman, you should begin investing from day one of your employment and allocate some funds towards creating a retirement corpus. Early investing is preferred as at this stage there is little to no financial dependencies and less commitments. You might consider investing in investment options that have the potential to deliver significant returns. If you are married, you might consider taking active part in your family financial management exercise. You must also ensure that all your investments, irrespective of the type of investment of your husband has nominations. Also, have joint holdings account wherever possible. As a cautious investor, you must be completely aware of the financial holdings and investments of your partner. Investing in a mix bag of debt funds and equity funds will ensure good diversified portfolio that will help you to attain decent returns. Do not forget to create an emergency kit that comprises of your three to six months of your living expenses. This will come handy in dire times such as loss of a family member, job loss, health issues, etc.
Remember, if you want to be financially secured during the golden era of your life, it pays to begin planning early. Now that you have realised the importance of investing (and planning), what are you waiting for? Invest in mutual funds today and build a significant corpus over time. Happy investing!
