It’s been well documented that women tend to experience more pauses in their careers, reduced savings, and increased longevity. Unfortunately, these kinds of issues can all prove problematic for a woman who wants to save for retirement. With the right financial team at your side, you won’t just be saving for retirement and possible health expenses, but will also work on creating safety nets like other savings plans to help you when unexpected situations occur.
Fewer working years on average for women also impacts Social Security payments. While you can start taking your payments there as early as age 62, this is at a reduced dollar amount. Women who might need to exit the workforce sooner than men may realize their retirement is underfunded and will turn to Social Security at a younger age to bridge the gap. If you plan to take benefits early but keep working, bear in mind that you need to plan for how much you can make before benefits are reduced. In 2022, for example, the earnings limit is $19,560. After that, one out of every $2 earned will be withheld by SSA.
If you wait to claim your benefits until your full retirement age, you can do so without any impact on your other earnings. What this highlights is the importance of having multiple options in your plan as a woman. You might outlive your spouse but will need to provide for yourself. On top of that, you might have your own health challenges or want to leave specific assets behind for your children or grandchildren.
Knowing all the options available to you and continually revisiting your plan with a financial expert is strongly recommended. Contact our office today to start building your own blueprint for the future.