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Women, Retirement, And Investment

How much should a woman have saved for retirement
3 Minute Read

There are many reasons women, retirement, and investment are important to consider in total, not least of which is a potentially untapped market.

Key Points
  • Retiring is a lifelong goal
  • Women earn less and invest less
  • Everyone needs to plan for the future


Retirement is a major phase in everyone’s life, as it prolongs beyond cumulative active years in the workforce. Women tend to retire early since they are majorly responsible for taking care of the household, as well as little and aged ones, even as they become aged ones themselves. As such, the necessity of an early retirement plan is paramount for future financial security, especially one that is geared towards investment.

Importance Of Retirement Plans For Women

Although everyone needs to set up a retirement plan, women are advised to be early birds for a number of reasons, some of which are listed below.

Income-Earning Work Hours

Women are said to earn less than men, and this is because women on average spend more time engaging in domestic and household duties than in money-earning jobs. An average woman is cut between managing her home and her finances, and the former usually takes precedence, especially when there is a partner to pay the majority of the bills.

Lifespan Factor

Statistics have shown that women tend to live longer than men, and as such, they would need long-term financial stability which can be secured through a retirement plan. This disparity in lifespan and earning rate makes it necessary for women to draw up a retirement plan.

Household Financing

In a case where there is no other figurehead to take care of the household bills, either as a result of death or joblessness, there is only one income. This can limit the amount of available funds for retirement, if started later in life. Traditionally, if the responsibility of funding the household expenses usually falls on the woman then with a good retirement plan, this would not be a problem.

Investment and Retirement

Investment is one sure way of multiplying one’s income and it is such that it can be initiated at any time, even while you are in the active workforce. Especially while you are active in the workforce outside the home! With several kinds of investment available, women can choose from any convenient investment as a good retirement plan strategy.

There are several kinds of investment to engage in such as stocks, bonds, real estate, commodity market, money market, mutual fund, cryptocurrency, trading business to mention a few. These investment opportunities come about through a 401(k) or Self-Directed IRA.

Before engaging in any of these investments, it is necessary to look into the following factors as a woman especially since it is a means for long-term financial sustenance after retirement.

  • Determine your investment mix. It is necessary to know the type of investment you want to engage in relation to the risk involved. Some investments are more than the other, although the risk tends to influence the rate of returns, that II the profit to be made from the investment.
  • Decide your desired IRR pattern. Since the goal for investing is to help fund your retirement age, it is important to check the IRR (investment return rate) interval. How often do you expect to receive returns on your investment, this will help in choosing from investment options.

Women And Retirement And Investment

Going by the accepted domestic difference in the duties of women, women must take up the initiative of early retirement planning, leveraging on the benefits that it will offer in the future. More so, when the plan includes investment as one of its major strategies for healthy financial security when retirement comes knocking, women have a chance to make their retirement fabulous.

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