Here we are, the last in my three-part series on planning for retirement at 50.
Over the last two short articles we have looked at why women over 50 shouldn’t invest and why we don’t.
Now for the most important part in this series. Why women over 50 should invest in our futures.
Top 5 Reasons Why Women Over 50 Should Invest
- Women are the Key to Prosperity.
This is actually a quote from Warren Buffet in Fortune Magazine. He went on to say, “we just need to unleash their potential.” Buffett and his family come from an era where women were encouraged to “marry well” in terms of a career goal.
We doubt ourselves and are constantly told men are better than us in business. However, we live in an era now where women are taking back control, putting right the wrongs and bridging the gender gap.
Let us be part of this revolution and forge our own future.
- Women Statistically Outlive our Male Counterparts by 6-8 years.
Are you prepared for this? Financially I mean. I know people that have been left reeling from the sudden loss of a partner.
I have seen them struggle to come to terms with the emotional void. This puts additional strain on their personal and family relationships as they push themselves in all directions to try and hold the home together financially.
When the terms ‘unexpected’, ‘sudden’, ‘out of the blue’ become part of your vocabulary, then by definition it is already too late.
- Women on Average are Paid 17-20% Less Than Men
I’m basing these figures on the UK, but I’m sure globally they are pretty similar. This affects us in our retirement too.
According to Ben Chapman of The Independent ” Women need to save around 5-7% more than men in order to enjoy the same level of income in retirement. And “1.2 million women approaching retirement age have no savings at all”.
- Women Initiate 60% of Divorce Proceedings Later in Life
According to a survey conducted by AARP Magazine (American Association of Retired People) over 60% of divorces are initiated by women in their 40’s, 50’s, and 60’s (the menopause years).
That is not to say we or our hormones are responsible though. I’m sure the male ‘mid-life crisis’ may have a little to do with it too.
The important point is that divorced women can end up with particularly small retirement savings, averaging just £26,100 compared with £103,500 for divorced men (The Independent).
- Women are Much More Risk Aware Than Men
Notice I didn’t say risk ‘averse’, but aware. It is an important distinction to make. For clarity someone who is risk averse will avoid risk or choose the option with the least downside (this tends to be how most men invest… not to be too generalist).
Women on the other hand tend to be more aware. This means they research and understand the benefits and cost of an action and will choose their course accordingly. Being aware of the risk means, in general they are less likely to avoid it altogether.
In investing, as in other fields, the payoffs are often proportionate to the risks taken.
Time to Be a Boy Scout
I keep talking about taking back control of our futures. About being the change we want to see. When we were young we were all taught to “think of others before ourselves” (The Brownies) or to “always do our best” (Girl Guides).
Whilst the boys were told to “be prepared” (The Scouts).
I say do what you need to do. Don’t put it off because it’s scary. Don’t put it off because you don’t know where to start. You don’t have to do what I’m doing, but do something! Start planning for retirement at 50, or whatever your age. It’s never too late.
My FREE guide is for beginners, it might help you make the right choice for you.