The retirement challenges we all face are difficult, but there are some steps people can take to ease the way:
- Save more. Women in the USA have an average 401(k) balance of $56,320, almost $47,000 less than men’s, according to a study by consulting firm Hewitt Associates of savings levels of 2 million U.S. workers. Saving just a little more can go a long way. Someone earning $57,000 annually who increases her 401(k) contribution to 4% of salary from 2% will have an extra $81,000 when she retires, according to Hewitt. Cost of delay . . .
- Delay retirement. If health allows, delay retirement until age 67 or even 70. That means more savings years, fewer years of tapping savings and higher monthly Social Security benefits.
- Don’t cash out. Women cycle in and out of the work force more often. When you do leave a job, roll your savings to another retirement plan, such as an individual retirement account or take out a personal pension plan
- Consider taking on more investment risk. As this is a long term investment you can take on more risk earlier on — talk to your Banner advisor.
- Unit Cost Averaging Can’t stress this enough!
- Consider seeing a financial planner. For busy people facing complex calculations, a trusted adviser can help you get on the right path to savings. But that is why you are here now.
