In celebration of International Women’s Day on March 8 and in recognition of March as Women’s History Month, the Transamerica Institute and its Transamerica Center for Retirement Studies (TCRS) has released five steps that women can take to better prepare for life in retirement. These steps were decided upon by ten years of retirement research conducted by the organizations, and in a “global collaboration of experts” on the topic according to the institute.
“Based on a decade of retirement research, TCRS and a global collaboration of experts developed ‘Five Fundamentals for Retirement Readiness’ which are everyday steps that can empower women to build long-term financial security and sustain healthy aging,” the institute said in a statement.
The five steps include bolstering savings activity at an early stage and habitually; the creation of a written retirement strategy; creating a backup plan for unforeseen events; the adoption of a healthy lifestyle; and embracing an attitude of “lifelong learning.”
“Since 2012, our retirement research has continually shown that the best route to retirement readiness comes from being a ‘habitual saver’ – defined as being some who always makes sure they are saving for retirement,” the institute says regarding bolstering savings activity. “Although saving is not always easy to achieve, especially against the backdrop of the COVID-19 pandemic and economic uncertainty, individuals can aspire to being habitual savers by prioritizing saving.”
A backup plan is also critical since unforeseen events can often befall seniors in retirement and can potentially impact women more severely, the institute says.
“Sound planning is not just about having a single plan in place,” the step says. “Even the best-laid plans can be derailed when unforeseen events get in the way. The pandemic reveals the dangers of not having a backup plan for unforeseen events, whether unexpected medical costs, employment setbacks, or sudden loss of income. For this reason, it is important that individuals take the time to consider and form backup plans.”
Find all five fundamentals at the Transamerica Institute.