One key way to improve your retirement prospects: Make it a point to save, invest and accumulate wealth as much as possible and to start early.

Although financial security in retirement for women have improved, new research from the Aegon Center for Longevity and Retirement report that women around the world share the same three career and financial challenges: a gender pay gap, time away from their careers, often due to caregiving responsibilities, and a lack of compensation for those responsibilities.

Despite the fact that women today are better educated and enjoy more career opportunities than any other time in history, even now, many struggle to achieve a financially secure retirement. As a result, it is imperative that women (and men) take greater control over their financial situation, retirement planning and long-term financial security. Women need to further engage in saving, investing, and preparing for long and healthy lives and secure retirements.

Aegon Center for Longevity and Retirement developed what they view as the “five fundamentals” for retirement readiness. The five fundamentals comprise: saving (starting early and saving habitually); planning (developing a retirement strategy); creating a backup plan for unforeseen events; upholding a healthy lifestyle; and embracing lifelong learning.

Overriding purpose of the key findings is to help men and women achieve a lifetime of financial security, both during their working years and through retirement. Important steps to take, according to Aegon’s report, include:

• Start saving, investing and accumulating wealth early and habitually. If offered a retirement plan at work, enroll in the plan. Admittedly, there are times in our lives when we can put away more money, and other times when it’s less. Yet, just the process of developing the habit of saving, investing and accumulating wealth can make a big difference.
• Develop a written financial strategy and plan. Create a plan that includes everything from goals you want to achieve to how you will reach those gaols. The plan should also factor in future healthcare expenses. It’s impossible to chart a course if you don’t have a destination in mind.
• Create a backup financial plan for unforeseen events. Consider emergency savings and insurance products such as disability insurance. Life will probably throw you some curve balls, so be ready to adjust your plans. Especially, if you plan to work longer and retire at an older age.
• Maintain a healthy habits and lifestyle. Make eating healthily, exercising regularly, avoiding stress and getting enough sleep part of their routine. Your health is key to enjoying your time in retirement. And yet, not enough people are paying attention now to their diet, exercise and sleep. By focusing on healthy habits now, you can keep health issues at bay later.
• Embrace lifelong learning and emotional wellness. Keeping your job skills up to date will help protect your income by keeping you employable. Keeping your social life active and engaged with friends and others will help create a more fulfilling life. And it’s also important not to neglect the basics of financial education and planning, and your social connections. You can make smart decisions with your money and smart choices with your emotional health.

Amid widespread concerns about the financial sustainability of social security and retirement systems, it is imperative that women (and men) take greater control over their financial security and retirement planning.

People need to engage in saving, investing, accumulating wealth and preparing for long, healthy and emotionally engaging lives and secure retirements.

References:

1. https://www.cnbc.com/2020/02/21/womens-retirement-prospects-are-improving-but-not-enough.html
2. https://www.aegon.com/research/