For single women, retirement can be quite a difficult time, but not for the reasons you might expect. They are usually paid less than men when they’re working and also live longer, which often causes several issues. But it’s not all bad news, as some women are turning these problems into opportunities. Let’s take a look at how.
Pay Differences
A dollar doesn’t stretch as far as it used to, and that’s become even worse for women who, on average, earn less than men. When it’s time for them to retire, they usually have a lot less in their savings compared to men as they don’t earn as much. This leaves them with less money to spend on essentials during their golden years.
Taking Time Out
Many women also take time out to look after kids or aging parents. As noble as this is, every year out of the workforce is a year without income, which sets them even further behind than their male peers. Soon enough, these missing paychecks can lead to some serious losses for women.
Smaller Social Security
These issues add up later for retired women because it means they’ll get about 20% less in Social Security checks than men if they start filing for them between 52 and 64. Unfortunately, this means they have a lot less for their golden years, and these years may not be as relaxing as they were meant to be.
Savings Gap
Even if they’re not relying on Social Security, single women have their work cut out for them with their savings. Most women aged between 55 and 64 have around $88,600 in savings, which is a lot less than single men or married couples. Single men have roughly $136,685, while couples have $423,800.
Outliving Their Savings
Women also live longer, so the cash they do have needs to last longer. They have to budget a lot more carefully and be smarter about where their money goes, which may involve reducing their spending. For some women, this also means investing what little money they have in low-risk assets for steady returns.
Rising Healthcare Costs
Similarly, single, retired women have higher healthcare expenses because they have a higher chance of getting chronic illnesses, and they’re less likely to receive unpaid care from a spouse. This can cause huge financial issues for them, especially as healthcare costs keep rising. Their health becomes a huge investment during retirement.
Part-Time Problems
On average, women are more likely to work part-time, which is usually because of their caregiving responsibilities. This can make them ineligible for employer-sponsored plans like 401(k), so they have less money to save for themselves. They’ll also miss out on employer contributions, which makes the retirement savings gap even larger.
Increased Retirement Anxiety
Recent surveys show that many Americans are growing more concerned about being financially secure during retirement. These fears are even worse for women, as they feel less financially stable than men. The best way to avoid these fears is to look at retirement planning or even face these worries head-on.
New Dreams
Of course, it’s not all bad news. Now that they’ve retired, many women no longer have to worry about their caregiving duties, and they’re taking this opportunity to start new businesses or travel to new places. This sense of freedom allows them to explore their passions and ambitions, which they couldn’t do during their working years.
Changing Retirement
Similarly, retirement isn’t the same for everyone. For some women, it’s a time for them to create a life that feels right for them, whether that involves working part-time or exploring hobbies they never had time for before. These activities mean they keep their mind engaged and maintain their social connections, which is particularly important when you’re older.
A New Career
For some women, retiring means switching career paths to become a caregiver so they can keep themselves afloat financially. Of course, this doesn’t always have to be a bad thing, but changing careers so drastically can be quite a shock to the system. Any woman thinking of doing this will need to be resilient.
Helping Others
Similarly, some women spend their retirement years giving back, whether that’s by helping out at a shelter or volunteering for charity. This way, they can make a difference and also make new connections with those around them. It gives them a sense of accomplishment they may not get from the workplace.
Slow Goodbye to Work
Other women prefer to ease slowly into retirement so they can give themselves time to adjust and build up their savings. Transitioning gradually like this can help them mentally and financially prepare for retirement so they don’t feel overwhelmed. Eventually, this could lead to a smoother and more stable retirement.
Single and Social
Being single in social settings isn’t always easy, but for some retired women, it gives them the chance to create new relationships. They can explore life beyond simply being part of a couple by doing things that they enjoy. They’re able to create a network of friends that share their passions and interests.
Working On Her Own Terms
Some women prefer to continue working but on their own terms, often as freelancers, which can involve house-sitting in exotic places or virtual coaching. Either way, these opportunities allow women to earn on their own terms, making work flexible and fun. These women are passionate about their work, yet they also get to enjoy the benefits of retirement.
Living Lightly and Freely
Retiring also gives you the freedom to travel the globe, and if you’re single, this can mean doing so without a mortgage or huge bills. For these women, retirement is a time for movement and minimalism. They get to explore cultures and meet people from all walks of life, which you simply can’t put a price on.
Home Is Where the Heart Is
In other cases, women return to their roots to support their families, as life has become too difficult for them to manage by themselves. Moving home gives them a sense of stability and can also help them connect with their community. This is important during retirement because it allows women to feel like they belong.
Adjusting Financial Expectations
One thing that’s common for all single women during retirement is financial planning. No matter how much money they’ve made or what experiences they’ve had, all women need to manage their finances. This way, they know they’ll have enough to cover their needs and enjoy their retirement without worrying about running out of money.
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