Women can have a more difficult time than men when it comes to finances. This is particularly the case for single women, as they have no other household income to count on. As of 2022, women are, on average, paid less, making approximately 83 cents for every one dollar earned by men. In addition, women are more likely to work part-time than men are.
All of this can have an impact on retirement income generation for women. In addition, there is a “knowledge gap” when it comes to women and financial literacy. This means that without a clear understanding of how money works, women can face a lifetime of fears about outliving what they have saved.
But the good news is that with the right knowledge and plan in place, single women can still join the ranks of those who live comfortably and count on incoming cash flow for the remainder of their lifetime.
Single Women and Money
Almost all women manage their money solo – without a husband or partner – at some point in their lives. This could be because they are divorced, widowed, or never married. But in any case, it is essential to save and protect as much as possible so that at some point, it can be converted into a sustainable income in retirement.
For single women who have worked for some or all of their adult lives, it is possible that savings have built up in an employer-sponsored retirement plan, such as a 401(k). In addition, paying into the Social Security system could qualify for income from this source, too.
Qualified Social Security beneficiaries can begin collecting these benefits as early as age 62. However, the dollar amount of these payments will be lower than if they aren’t claimed until full retirement age.
There is also the possibility of generating interest and/or dividends from personal savings and/or investments. Depending on the type of account these are in, the income that is generated may be fully or partially taxable.
One of the best ways to ensure that income will last as long as it is needed – even if this time frame is several decades – is through an annuity. These financial vehicles are designed to pay out income for either a pre-set period of time, such as 10 or 20 years, or alternatively, for life. This means that there is no need to worry about income running out – even given longevity.
Before committing to any type of retirement income strategy or plan, though, it is essential to first go over short- and long-term goals with a retirement income specialist. This can help to narrow down the best technique, based on specific goals, risk tolerance, and time frame.
Do You Have a Retirement Income Plan in Place?
If you don’t yet have a retirement income plan in place – or, if you have one but you would like to get a second opinion – Annuity Gator can help. Our professionals specialize in educating consumers (and financial advisors) on how to set up the right retirement income plan, as well as how to choose the right tools to get the job done.
So, if you would like to set up a no-cost, no-obligation call with a retirement income specialist from Annuity Gator, please feel free to call us directly at (888) 440-2468 or you can send us an email by going to our secure online contact form. We look forward to hearing from you.