While we have, in the past, talked about Ginsberg’s views and tips on saving for retirement in general, this post deals purely with why saving for retirement is different for women than for men and Ginsberg’s suggestions on how women can gradually start building up a healthy retirement fund for themselves.
A simple fact that sets women apart from men is the difference in life expectancies. While a man has an average life expectancy of 76 years, a woman’s is slightly more than 80 years, which means that women need more funds for retirement than men, at least 4 years’ worth. This difference alone could work out to a few hundred thousand dollars.
Another challenge that women face sometimes in their lives is that they sometimes give up their jobs or take a long sabbatical to raise a family, which puts them behind on their incomes and saving goals.
Adam Ginsberg, the leading internet entrepreneurship coach, offers a few pointers that could be useful for women to save for a happy and comfortable retirement.
For starters, don’t be afraid of the numbers. Research has shown that more women think that calculating investment goals and crunching numbers to achieve those goals can be a complicated and tedious job. Well, nothing can be further from the truth. All it takes is determination on your part to sit down and understand investment basics like interest rates, various investment options like IRAs, Mutual Funds, 401(K) and the like. You can even take the help of professional financial planners to know what your investment goals should be and how your investment money should be distributed.
Secondly, if you are planning to take a break from your career, make sure to understand how much money you’ll need to put away for your non contributing period in your retirement funds when you do start to work again. The figures may be a bit daunting, but don’t stress over it. You can gradually increase your contributions by 1–2% every quarter till the time you reach your goal, and it wouldn’t feel like a burden.
Third, find ways to supplement your income, and consequently your retirement fund. Adam suggests the internet as a great source of additional income, so that even if you do need to top working for a period of time to raise a family, you can still stay home and earn money on the internet. As an option you can check out Adam Ginsberg’s eBay resources to supplement your income from eBay.