x
Breaking News
More () »

How women can better prepare for retirement | Money Smart

The gender pay gap impacts the amount of money women have saved for retirement compared to men.

HARRISBURG, Pa. — Women live longer than men, but typically they earn less than men and have less saved for retirement. So, should women be preparing for retirement differently than men? 

"Generally the same rules apply to all persons," Dmitriy Krichevsky, an economics professor at Elizabethtown College said. 

He says women just need to be aware of their disadvantage when it comes to saving for retirement. However, there are steps they can take to ensure they are prepared when it comes time to retire. 

"Plan," he said. "The earlier the better." 

Krichevsky suggests starting to contribute to a retirement fund, whether that's a 401k or an IRA.  

"I certainly recommend everyone take advantage of the market and the way it has been growing and building up for decades," he said. "It's more attractive than keeping money in bank or in cash. So, take advantage of your employer matching, start early. That compounds to fairly large sums."

Krichevsky also suggests hiring a financial advisor, if you're able to do so. They can help ensure you're making the most of your investments and remain on track to retirement, he added. 

"Financial planners are very useful because they help you align your goals with what's needed to achieve them," he said. 

Lastly, for those nearing retirement, figure out exactly how much money you'll get in social security. It may be better for you to wait a couple years to begin collecting it. Also, keep in mind added expenses, like more medical bills as you get older.

Download the FOX43 app here.

Before You Leave, Check This Out