Women are typically at a disadvantage compared to their male counterparts when it comes to saving for retirement. In fact, the majority of women are not confident that they’ll be able to save enough for retirement in order to fund their desired lifestyle [via Benefits Canada].
Not only do women tend to live longer than men, they also have lower earnings on average during their lifetime. Plus they are more likely to work part time, or take time off from their careers to focus on raising a family. Those factors, coupled with the fact that females are generally less aggressive with their investments leaves many women worried about retirement. In fact, only 55% of women in Canada say they have a financial plan that involves saving for retirement [via Benefits Canada]. What can women do to ensure they’re ready for a financially stable retirement? Read our tips below.
Start early.
It’s never too early to start saving. Actually, the earlier you start, the better. Compound interest from your RRSPs can really pay off – literally. Waiting until you’re in your 30’s or 40’s before you start saving means that you will have to save a lot more money, over many more years to come out ahead compared to beginning your RRSP contributions in your late teens or early 20’s.
Remember, every little bit helps.
Too often people think that they need to save a lot to make a difference. But in reality, regularly investing small amounts – especially in the early years – can really add up. As long as you’re saving something, you’re saving for retirement and that’s what is important. Try to consistently save even a small amount whenever possible, and increase your contributions along with your salary.
Pay yourself first.
Saving for retirement is important. It takes commitment, and needs to be done on a regular basis. Therefore, it’s best to set up automatic transfers each month to ensure that you get paid. By paying yourself first, you’re making your retirement plan a priority – and ensuring that you’re consistently making contributions. Since the money is invested automatically, after a few months you likely won’t even notice it’s missing.
Invest more when you can.
Work bonuses or tax refunds make good additions to your regular RRSP investments. By saving additional income that you receive throughout the year, you can increase your retirement savings without sacrificing your regular spending money. Be disciplined. You’ll be happy with what you’ve saved as your retirement gets closer.
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