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The Facts About Women & Retirement

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  • March 8, 2022

AUTHOR: Cleora Farquharson, Vice President & Group Head of Pension Services

Cleora has more than 15 years-experiences in the Financial Services Industry. In her current role as Vice President of Pensions Services, she is responsible for the direction and execution of all pension-related products and services. She holds a Bachelor of Commerce Degree in Finance,  is a Chartered Investment Manager and an Associate of the Bahamas Institute of Financial Services amongst other achievements. 


Women are the lifestyle leaders inventing the future of retirement. For a variety of reasons, women are generally better at aging than men. They are more dynamic, take on more roles and duties, and are more clear-sighted in regard to the new frontier of longevity—and they also live longer.

At the same time, there are certain retirement challenges which women will have to contend with in an era of longevity that their counterparts may have the privilege of avoiding. As a mixed sort of celebration of International Women’s Day, here are some retirement realities for women (and for the companies that serve them):

 

Why Women need To focus On Financing their Retirement?

1. Women earn less. Part of this may be due to career choices, but a key component is clearly the wage gap with women earning only $0.79 on the male dollar (according to US Census Bureau).  

2. Women engage in paid work for fewer years.  Women take more time out of the workforce than men, typically to raise children or care for elderly parents.  On average women spend 12 years less than men in the paid workforce. This dramatically impacts women's ability to save for retirement.

3. Women live longer. Women have an average life expectancy of 80 years versus 75 for men.  This means that women have to fund more years of retirement, after having worked for less money for fewer years than men.  To add insult to injury, those last years are often lived alone.

4.  Women are not encouraged to negotiate their true worth. Women often feel uncomfortable speaking up for themselves in the workforce. This is unfortunate, because women have a solid track record of financial competence when they do engage with money. 

 

TIPS FOR WOMEN INVESTORS

Start Now--You don't have to have large amounts of money. Starting early is the best strategy.

Set Goals--The most common financial goals include paying off debt, putting kids through college, and saving for retirement. Change your strategy as your situation changes.

Shake off the old myths--Myths and misconceptions sometimes prevent women from taking charge of their financial security.

Just Do It--Don't limit yourself to conservative investments such as money market accounts and CDs. Use asset allocation to diversify your portfolio.

 

 

Tips to Empower Women

Every day, read something about money, even the business headlines in a newspaper, to familiarize yourself with financial jargon and trends.

Every week, have a conversation about money, especially with those who know more.

Every month, move some money into your savings account.

Because women generally tend to ask others for advice and prefer social interaction more than men do, attend financial seminars or consider joining or starting an investment club.

These suggestions should point you in the right direction, but you'll need more information. Call a Retirement Advisor at RF Bank & Trust. Ask questions and make sure the answers make sense to you. Get practical advice and act now.



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