No Retirement Savings? - Guide to Catch Up with Savings.

"Retirement is not a destination; it is a journey. And creating retirement funds is the vehicle that will take you there." - Emily Guy Birken

Key Highlights of the Blog

1. Building your retirement corpus early
2. Working for long, to accumulate more wealth.
3. Seeking support with professional help
4. Considering long-term care insurance

Research has shown that women have a longer life expectancy than men, which is why they need to plan for a longer period. Single women often struggle to plan their retirement and savings, which leaves them struggling during retirement. This situation can be avoided with prior planning. Here are a few tips for single women to ensure the financial security, even during retirement. 

Start Building Your Corpus Early

The best time to have started building your retirement corpus was yesterday, and the next best time is today. The earlier you start, the more the power of compounding can help you add to your nest egg. Saving at least around 10-15% of your salary for retirement would be ideal. If you cannot afford that much right now, you can start with a smaller amount and gradually increase it, as your salary increases. You can also consider investing your funds in safe investment avenues such as mutual funds, which help you grow your wealth. 

Here’s a look at why mutual funds are one of the best investment options for women. Mutual funds are one of the best options as the fund is managed by experts, who have knowledge about the equity markets. Investment in mutual funds (MFs) gives a balanced portfolio with equity and debt schemes with a much higher return. You can choose to invest in equity mutual funds for your long-term goals. Even if you are not formally employed, you can start small with SIPs (Systematic Investment Plans). SIPs allow investors to literally invest as little as Rs. 500 every month in Mutual Fund schemes. 

Build a Safety Net

Apart from your retirement corpus, you need to build a safety net for yourself, in case of an emergency or job loss. This amount should be at least 6 months’ worth of your salary. Additionally, availing disability insurance to protect your income would also be a good idea.

Plan on Working Longer

Working a few extra years will help add to your corpus, or at the very least, keep it untouched for longer. Moreover, since a woman’s lifespan is longer now, a few years extra of working can offset that. It is always a good idea to overestimate your needs and save more than what you think you’ll need. Working longer will help you do that as well. 

Get Professional Help and Seek Support

If you are not so confident on your own ability to plan your finances, you can always get professional help. Doing so will boost your confidence and provide you with a detailed financial plan to follow. Additionally, you can approach another friend in a similar situation. You both can plan your finances together and support each other throughout the process. 

Consider Long-Term Care Insurance

Considering long-term care insurance is a good idea, particularly for single women. There is a very real possibility that you will need this in your old age, especially since you may not have anybody else to take care of you. Though premiums for long-term care insurance aren’t cheap, the earlier you purchase it, the more affordable it will be.

So, you can use these tips to create a sound financial plan for yourself. You can then head for your retirement without stress and enjoy a happily-ever-after all by yourself.

Happy Retirement!