Don’t you think it is amazing to see so many women taking charge of their financial lives ? In the last decade the number of women who contribute to the household finances has increased. We can find that there is a sense of satisfaction among women who take pride in the fact that they are financially independent. Free Financial Advisory Portal, MoneyMindz.com today discusses about the fact that how important it is for women to look after financial planning?
You should know that it is important not to confuse your current financial independence with financial freedom. One is able to take care of your personal expenses at present by being financially independent. You are able to maintain your desired lifestyle throughout your life-time, including your retirement when you are financially free. It happens automatically just because you earn ave an income. This requires thought and planning and is more challenging for women than it is for men.
Why would I need to plan for a separate retirement? This question might come to your mind. There is possibility that you have a substantial retirement pot to which both you and your spouse has contributed, and it should suffice to live a peaceful life. But there are reasons why women need to be specifically prepared for their retirement as well.
Women are paid lesser than men
There is no equality in pay as much as we aspire for it. Usually women re paid lesser than their male counterparts. We have come across a few couples who were classmates from premier business schools and now married to each other, and it is an eye opener to see the gap in their salaries.
In their career they take more breaks
We can see that women take breaks more often than men. Breaks can be taken for any number of reasons, the primary ones being child care or caring for older family members who are ill. It also might be giving up a good job due to transfer of the spouse and not being able to find something suitable. A person who has taken a break will tell you that getting back into the saddle after a break is never an easy task. One can settle for less than what one is capable of.
Life expectancy of women is higher
It is a global trend that women live longer than men. It would mean a higher retirement corpus will be required to account for the longer life span. Longer lifespans mean higher expenses on health care, which need to be planned for.
So, what can one do to ensure you are in control of your future? Lets have a look.
You need to start investing early for your goals. Choosing investments that build wealth,
keeping in mind the goal’s time horizon is necessary.
Protecting your incomes through adequate life insurance is important.
Keep a contingency fund ready for that break that you might need to take.
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