Top Tips for Women to Boost Retirement Savings: Insights from a Financial Expert
The latest survey conducted by GOBankingRates has revealed that many women are prioritizing saving for retirement as their primary financial goal. With over one-fifth of women stating that saving for retirement is their top priority, it’s clear that financial security in the future is a major concern for women across the country.
The survey also found that for women nearing retirement, aged 55 to 64, saving for retirement is the number one financial goal, with 30% of women in this age group focusing on building their retirement savings.
However, despite the importance placed on saving for retirement, many women are facing obstacles in reaching their financial goals. The survey showed that 53% of women cited a lack of money as their biggest barrier, with an additional 18% stating that a combination of a lack of money and lack of knowledge are hindering their progress.
To address these challenges and help women boost their retirement savings, Leslie Thompson, CDFA, CPA, CFA, chief investment officer and co-founder of Spectrum Wealth Management, shared some valuable tips in the “Financially Savvy Female” column.
One key tip Thompson emphasized is being mindful about spending. By tracking expenses and identifying areas where spending can be reduced, women can free up extra money that can be directed towards retirement savings.
Thompson also highlighted the importance of paying yourself first by setting aside money for retirement savings before allocating funds to other expenses. By automating contributions to retirement accounts, women can ensure that they are consistently saving for their future.
Additionally, Thompson advised women to take advantage of employer-sponsored retirement accounts, such as 401(k) or 403(b) plans, which often offer matching contributions. By maximizing contributions to these accounts, women can make the most of their employer’s benefits and accelerate their retirement savings.
Lastly, Thompson recommended investing in a brokerage account to build a diversified investment portfolio outside of structured retirement plans. By starting small and consistently contributing to these accounts, women can watch their wealth grow over time through the power of compounding.
Overall, the survey results highlight the importance of prioritizing retirement savings and taking proactive steps to overcome financial obstacles. By following these expert tips, women can work towards achieving their retirement goals and securing their financial future.