Though your boss likely denies it, the gender pay gap exists across most industries – including yours. Years of gender-based earnings disparity have resulted in a significant pension savings gap between men and women.
I’m a Woman. When Can I Retire?
Nearly half of women aged 50-65 plan to continue working in some capacity after reaching the state pension age.
The result? Many women in their 50s and 60s are left in a financially precarious situation. The retirement age for women is moving back. And that’s before we consider the cost of living crisis. Or acknowledge that many women in this age bracket struggle to find work due to age discrimination or a lack of flexible work opportunities.
Not a very pretty picture, is it?
Do you feel confident about your retirement provisions?
One in three women have reservations about their retirement provision meeting their needs. The retirement age for women is shifting, as research shows that 34% of women aged 50-65 have changed their retirement plans and expect to stay in paid work for longer.
8 ways to boost your savings and overcome the retirement challenge for women
Maximise your pension contributions
Contribute as much as possible to your workplace pension or retirement savings to take advantage of tax relief. Check if your employer offers matching contributions. If they do, take them up on it. It’s free money. And who doesn’t love free money?
Save more by making small changes
Review your budget to find areas where you can cut expenses to boost savings. Cancelling some subscriptions or negotiating a lower rate on your car insurance may not feel like much, but it all adds up.
Consider investing
Explore options that will provide higher long-term growth than a traditional savings account – such as investing. Of course, there are no guarantees. Be sure to do thorough research and consider lower-risk options too.
Leave your retirement savings alone
Once you come of age (currently 55), you can make withdrawals from your retirement pot. But, just because you can – doesn’t mean you should. The longer you can leave your retirement accounts untouched, the better off you’ll be long-term.
Pay yourself first
A smart way to ensure consistent saving is to automate your retirement contributions. Make it a habit to move money into a savings pot every pay day, or set up a direct debit to do it for you.
Combine your pensions
If you have multiple pension pots, it’s usually a good idea to combine them. This will make it easier to keep track of your overall savings – and minimise the fund charges of multiple providers.
Before you transfer, be sure to check the type of pension you have. Some schemes are best left untouched until retirement.
Make the most of joint allowances
Got a partner? You’re in luck. Where shared assets are concerned, it’s worth looking at both of your pensions and savings together. You may be able to optimise your retirement plan by combining joint savings.
Adjust your retirement plans
If you’re nearing retirement age and concerned about insufficient funds, consider delaying retirement or switching to reduced working hours. Keep your pension provider in the loop about any changes and explore investment options that align with your new timeline.
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