SOMA Living March 2024

FINANCIAL FOCUS On International Women’s Day, March 8, we celebrate women’s global achievements but also recognize the challenges they face in securing a comfortable retirement. Several factors contribute to this issue: Pay Gap: Women typically earn about 82 cents for every dollar that men earn, affecting their ability to contribute to retirement savings and resulting in smaller Social Security benefits. Longevity: Women live longer, with an average life expectancy of about 20 years at age 65, which increases their retirement expenses. Caregiving: Caregiving responsibilities often lead to reduced earnings and retirement contributions for women, with employment-related costs reaching nearly $300,000 over a lifetime. To bridge the retirement gap, women can take proactive steps: Maximize Retirement Contributions: It’s crucial to contribute as much as possible to 401(k)s or similar plans, taking advantage of tax-deferred growth and employer matches. Optimize Social Security Benefits: Delaying Social Security until full retirement age (around 66½) can significantly increase monthly benefits. Coordination between spouses can also maximize benefits. Build an Emergency Fund: Aiming for a fund that covers six months of living expenses can protect retirement savings from unexpected costs. Although women face a more challenging route to retirement security, adopting strategic financial planning can help ease this journey and ensure a more secure retirement.

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With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

MARCH 2024 | SOMA LIVING 17

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