The Buyt Desk
The role of women in India has evolved. Women are joining the workforce in large numbers. They have become earning members of the family and at the same time are homemakers too. But when it comes to financial planning they are either not taking the matter in their hand or are dependent on their father/brother/husband. Especiall when it comes to retirement planning they seldom plan. But this is the biggest financial mistake that anyone can commit. If you are earning then it’s your duty to save and plan for your non-working years of life. Don’t be dependent on your spouse’s retirement plan but have one for yourself. Retirement planning for women is as imperative as it is for men.
Why is Retirement Planning Important for Women?
Retirement planning means planning for the time when you would leave the workforce and no longer have a steady income. This will entail a balance between current expenses and saving for the future. It is more important for women to plan their retirement years because –
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They have a longer average life than men.
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They have to take more career breaks like maternity leave and at times to take care of elderly family members.
What Should Women Do to Save for Their Retirement?
Save Aggressively – The women are always considered the secondary earner in the family because of their other responsibilities. Plan your finances well and divide it with your spouse. Don’t end up spending all your money buying stuff, paying fees or debt. When both members are earning, women have more power to save than men. Start saving aggressively.
Start Saving As Early As Possible – On average, a woman tends to spend less time in the workforce than men because of children, family, and elders care liabilities. It is also a reason for their being underpaid compared to men. If you start saving early, you can accumulate a good corpus for yourself and get better prepared for retirement.
Also, at a young age, the potential to take risks remains high because of a steady income flow. It helps in systematic investment plans.
Find out About Financial Products – It is good to be informed about different financial products available for women. Employee provident funds, mutual funds, fixed deposits are some of them you can try. The more you will get educated, the more options you will have for retirement planning.
Buy a Suitable Retirement Plan – If you do not want to run out of cash after retirement, invest in a suitable retirement plan as early as possible. Retirement is the time when your income reduces and your expenses increase. A retirement plan helps you have a steady flow of money, and you do not have to compromise on your living standards. It also aids you in meeting your goals without much stress.
Think For Long-Term – Do not ignore a health insurance. Buy comprehensive health insurance plans as early as you can. This will help you to handle unexpected health-related expenses.
