However wonderful a dancer Fred Astaire was, Ginger Rogers did everything he did, but backwards and in high heels. Women planning their retirement may sometimes feel like Ginger Rogers—having to execute far more difficult steps just to keep up.

Among the hurdles women face in achieving financial security in retirement are:

• Lower lifetime earnings, which makes building wealth more difficult
• Career interruptions to care for family (children and aging parents) that further pressure lifetime earnings potential
• Longer life expectancy, which requires savings to last longer

10 Steps to Address Women’s Retirement Challenges

A Chinese proverb tells us the two best times to plant a tree are 20 years ago and today. So, while many women would have benefited from starting their retirement planning five or 10 years ago, now is the next best time to begin.

Here are 10 steps women can take to build a more financially secure retirement.

1. Start saving now. Leverage the power of compounding to help build meaningful retirement savings. Start with tax-advantaged options—like your employer’s 401(k), which may match your contributions—or an IRA.
2. Build an emergency fund. Having three to six months’ living expenses in the bank or a money market fund provides a financial cushion against a temporary loss of income or an unexpected large expense. It’ll also help keep your long-term savings plan on track.
3. Fund a Spousal IRA. Even if you’re not working, working spouses can fund a Spousal IRA up to $6,000 annually (or $7,000 if age 50 or older).
4. Contribute to a Health Savings Account (HSA). If eligible, contributions are tax deductible and distributions are tax-free when used to pay for qualified medical expenses.
5. Invest intelligently. The stock market is an excellent way to potentially build wealth long-term. Consider professionally managed portfolios, like multi-asset managed accounts or target date funds.
6. Don’t let a divorce harm your financial security. Retirement assets should be negotiated; also, remember you are entitled to the Social Security benefits on your ex’s earnings, if you were married for at least 10 years and are at least 62 and unmarried.
7. Consider guaranteed lifetime income products, such as annuities, since your life expectancy is so long.
8. Do’t forfeit your survivor benefit on your spouse’s pension, even if it reduces payments while both spouses are alive.
9. Become more educated on financial and investing matters. Knowledge begets better decisions, resulting in better outcomes. Become involved in planning with your spouse.
10. Work with a financial professional. A financial professional can help you create a budget, develop a retirement strategy and guide you throughout the many years of ahead of you.

This, among other retirement concerns (e.g., keeping busy and avoiding boredom, deciding where to live and adjusting for inflation) are all of great importance … women just need to consider additional matters for their golden years.

Please reference disclosures at: https://blog.americanportfolios.com/disclosures/