These tips on Avoiding ‘Roadblocks’ to Retirement is an integral part of planning for your future
They say if you fail to plan, you are planning to fail. That is why we go to school and get a job, hopefully, a high paying one. That is why every year we make a new year’s resolution, buy a yearly planner and attempt to get it right. Then you wake up on your 35th birthday and realize, you will be working way into your desired retirement age.
When I was younger, I had grandiose dreams. A corner office in a Fortune 500 company, a beautiful house with a spiral staircase in a nice neighborhood nestled on a cul-de-sac. However, as I have gotten older, that dream has shifted. Whenever I think about how far removed I am from my childhood dream, my heart breaks, and my eyes sting. Is this what my future holds? A perfect setting for mediocre, a road paved with unrealized dreams, poor planning, and bad financial choices.
I am fast approaching 40. No need dwelling on the past. Nowadays, I focus on what we have. I have a supportive husband, two wonderful children. We own a moderately sized home in a nice neighborhood. We don’t have a spiral staircase but we made up for it in ample backyard space, so the kids have somewhere to play.
I would be lying if I said it doesn’t pain me to know I am not where I want to be. However, I am grateful for where I am. The older I get, the more I realized the importance of proper planning. I have been in the workforce for a little over twenty years and the thought of having to work an additional twenty because I didn’t plan for my retirement is exhausting. My initial goal was to retire at 55. I figured at that age, I will still have all my senses and enough energy to travel the world. Our kids will be older but not old enough that they will no longer need us.
I say all this to say: as women, it’s important to take control of our finances. Lots of have been performed about the financial challenges women face for several years, and I was surprised to learn there are four challenges that affect women and their financial planning. We need to educate ourselves on potential challenges that could impact our financial future.
4 ‘Roadblocks’ to Retirement for Women:
- Wage & Income Gap: Statistically women earn way less than men. And if you’re a minority, chances are that number is even lower.
- Investment Gap: Women don’t invest to the same degree as men.i Why? Because we are afraid. We are afraid to take the risk, so we invest in accounts with lower risk and even lower returns. Or we procrastinate and lose money in the process.
- Women are Living Longer and Living Alone: You heard right, we live 5-6 years longer than men.iii
- Time Gap: Procrastinating in planning. We think we don’t have enough time to plan for our financial future. Then, it’s too late, so why bother?
There you have it, the four roadblocks that could potentially be standing between you and your retirement. How do you plan on tackling them?