Being single has its own advantages. The fact you’re in total control of your finances and need no one to depend on is a liberating feeling altogether. Haven’t we all seen couples arguing often about money and finances? Rather than engaging in petty matters or something more intimidating – many women often choose to leave all that aside and start a life of their own. For divorced or separated women or even widows, money management often can pose difficulties, if they haven’t done so earlier. Considering such challenges is a prime responsibility that most women have to do in their lifetime. But thankfully, there are ways to proactively counteract them and stay prepared for retirement in the long run. Here’s how you can save for your “golden years”.
Begin At The Earliest
Society has taught us how having dual incomes is the norm now. Imagine if the sole breadwinner dies or loses his income, it makes sense that the stay-at-home spouse would head towards job hunting and work towards creating a safety net. Unexpected circumstances can arise anytime, and that makes the single wage-earner more cautious than ever. This narrower margin of error must be taken into note when it comes to financial planning. So, create a good emergency savings account or pay for the disability insurance (if you have children or life insurance)- and start right away.
Are You Suffering From The “Lottery” Mentality?
In case you’re a tad unfamiliar with expenses, savings, income, and net worth – these are added risks. For the rest of your life, you’ll constantly suffer from the thought of how you should have sorted your money well. Widows who often get a huge life insurance payment can see it as a “windfall” since they don’t know how to make it last for decades. In divorces too, a huge settlement amount is not necessarily a license to spend life lavishly, but a support mechanism. Look at the long-term scenario and plan your budget likewise.
Make Attempts To Understand Finances
For any woman who hasn’t married means, she’s quite capable of living life on her own terms, in every possible way. The problem lies more for widows and divorcees who didn’t play much of an active role in the family finances. A spouse passing away unexpectedly can give a huge jolt to his better half! So as the woman, she should make ways for recovery. Learning up on financial matters consulting experts and then taking important financial decisions without having to worry about the repercussions indicates that she has already built her skills and grown her confidence. The best thing would be to get started as soon as you get married in the first place. Since women have a longer life expectancy than women, it is evident that most women are likely to face similar turmoil, if they don’t make the necessary arrangements well in advance.
Realize What’s Meant By Social Security Benefits
Single women can have a tough time knowing the benefits of Social Security, specifically divorcees and widows. Widows can start claiming benefits when they’re 60 if required at all (after spousal death). Then there are survivor benefits if she has kids who are minors that she can avail of, till they’re 18. For divorcees, the claims benefits are based upon the earnings record of the ex-spouse. If there’s a second wife adder remarriage, then both the wives can claim the benefits of the Social Security record. But it’s advisable to delay the collection of these benefits, as old age can give a tough time.
Coming Out Of The Comfort Zone
Most women clients are more “conservative investors”, so experts usually ask beforehand if they’re willing to take risks. Men usually are more comfortable taking risks but can tinker during both good and bad times. For a woman who’s retiring in her 60s, chances of having a 20 or 25-year life expectancy are common. She’ll need funds that would see her through a longer retirement. So that she doesn’t run out of money in the long run, it’s wiser to go for ‘aggressive investment allocation’.
This can sound identifiable in several such cases. So start educating yourself about the benefits and hazards of investment strategies and see how your future is shaped well.