Today’s macroeconomic environment is frightening and many investors are nervous about the path to financial security in retirement. This is especially true for women who face significant barriers to retirement savings and financing. Wage disparities, time away from the workforce to care for families and children, and longer lifespans mean it’s even more important for women to develop long-term plans before it’s too late.
Women anticipate retirement disruption and adjust accordingly
From 2022 onwards, there is growing interest in women’s retirement. According to the 8th Annual Advisory Board, 20% of non-retired women are worried about their ability to retire, and 15% of women who are not retired say they cannot afford it. . (opens in new tab) Research provided by the Nationwide Retirement Institute (opens in new tab).
While market volatility and high inflation have become the new normal, nearly nine in 10 women (87%) say they can do everything adequately to manage their household finances, but still have access to external resources. said they would be caught off-guard by the events of 2020, a double-digit increase from 2022. While many believe they are facing or close to a financial crisis, less than half (45%) of women say they have strategies in place to protect their assets from market risks. .
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However, many women are adjusting their lifestyles to stay resilient and maintain their financial health. Over the next 12 months, 31% of non-retired female investors said they would avoid unnecessary spending to prioritize retirement savings. They are also more cautious, with more than a quarter (28%) saying they manage their investments more conservatively.
Benefits of working with a professional
Whether today’s economic environment is officially called a “financial crisis,” a run-of-the-mill recession, or just a speed bump, advisers and financial experts are It can be an important resource for achieving stability. More women are seeking this guidance, from her 45% in 2022 to her 52% of female investors working with advisors in 2023.
A financial advisor can help you decide which investment strategy suits your amount of money to save and your risk profile. They can work with you to develop a plan to ensure you don’t exceed your savings, taking into account Social Security, health care and potential long-term care needs. It can also help you develop a legacy plan for your family and loved ones.
In uncertain times, the value of sound financial advice is immense. Ninety-seven percent of women with a financial advisor said that working with her financial advisor gave her confidence in her ability to make good decisions even in crisis situations. And while this advice comes with a financial cost, most investors would say that the long-term investment results more than offset this cost.
Need help finding an advisor or financial expert? Start by asking your friends. Whether you are looking for a female advisor or an advisor with experience in serving female clients, use our personal network to find the right advisor.
4 DIY Tips to Protect Your Retirement Portfolio
Some people are hesitant to work with a financial professional because of the cost or feel they can make a plan on their own. Here are some tips to get you moving in the right direction.
- Saving something is better than nothing. Saving doesn’t have to be an all-or-nothing proposition. Many women are balancing day-to-day expenses and debts, or want to make another investment, such as buying a home. Wait until you check those items off your list before you start saving for retirement.
- Don’t miss matching posts. If your employer sponsors a retirement plan match, consider contributing enough to take advantage of the full match. These contributions can make a big difference over the course of your career.
- Do not sit on the sidelines. The biggest advantage for young investors is time. Start saving now and start working the magic of compound interest. Buying is cheap when the market is down, so don’t slow down in a volatile market unless you have to.
- Set it and forget it. Do not check your account balance daily or weekly. In today’s environment, it’s unnecessary stress. Remember, you’re investing for your retirement, not next week. Avoid the temptation to make hasty decisions when you see short-term fluctuations in your balance. Instead, review your investment strategy once a year. Many employer-sponsored retirement plans offer resources to help you do this for free. After that, let it go until you reconsider your plans for next year.
Many women feel they have to spend their lives caring for others. That’s great, but it shouldn’t come at the cost of taking care of yourself. Whether you’re working with a financial professional or just starting your journey to financial empowerment, it’s time to put together a plan or at least take the first steps in setting yourself up for long-term success. There is no better time than now.
Investing involves market risk, including possible loss of principal. No investment strategy or program can guarantee profits or avoid losses. Actual results will vary depending on investment and market experience.
Nationwide and its representatives do not provide legal or tax advice. For answers to specific questions, you should consult an attorney or tax advisor.
Nationwide Investment Services Corporation (NISC), Member FINRA, Columbus, Ohio. The Nationwide Retirement Institute is a division of NISC. NFM-22941AO
This article was written by and represents the views of a contributing advisor, not Kiplinger’s editorial staff.Advisor records can be viewed with the SEC (opens in new tab) or at FINRA (opens in new tab).