Staff Reporter
Many women are discovering that their retirement plans don’t align with reality, particularly regarding expenses.
A recent survey by Corebridge Financial found that half of the women questioned reported that retirement costs were higher than they anticipated. Additionally, nearly half indicated they retired earlier than expected.
Experts warn that retiring sooner than planned can lead to financial challenges. Early retirees may face insufficient savings and might need to claim Social Security benefits early, resulting in reduced monthly payments.
Given that women typically live longer than men, they often require more substantial retirement savings to sustain themselves over time.
“Women are retiring earlier than they had planned and grappling with unexpected costs. These challenges highlight the need for a proactive retirement action plan during their working years, helping to build savings and ensure they last throughout retirement,” said Terri Fiedler, President of Retirement Services at Corebridge Financial.
Majority Regret Not Saving Sooner
A significant 63% of women expressed regret over not starting their retirement savings earlier. More than 40% reported that they didn’t begin prioritizing retirement until age 41 or older.
Investors who start saving early can take advantage of compound interest, which often means they won’t have to invest as aggressively later on. Notably, nearly one-third (31%) of retired women surveyed wished they had contributed more from their paychecks to their retirement plans while they were still working.
In the past, many workers benefited from pensions, but the responsibility for retirement savings has increasingly shifted to individuals. The survey noted that one-third (33%) of retired women had a pension, compared to only 9% of non-retired women. “This shift reflects the evolving landscape of retirement,” the report stated.
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