Why Retirement Planning For Women Is Important? 6 Crucial Steps To Guide You To Financial Freedom

Why women need retirement planning more than men do?

Here's the whys:

• Women live longer, thus with a longer life span, they've more years to spend in retirement(Note: In the US, the life expectancy for women, in 2007, is 83.2 years and for men, 78.5 years)
• Because women live longer, they need a bigger pile of money to support their retirement
• Women tend to outlive their husbands. On average women will survive their husbands by 15 years
• The combo - being on their own and living longer means that women need a bigger retirement income than men

The bad news is that women's retirement planning just doesn't measure up due to several factors: that they depend on their husbands to do the planning; that they're limited in their retirement savings; that some are single mothers who can't afford to save for something so far in the future; that some don't understand the process of retirement planning so delay about starting a plan and that some others mistakenly think they can get along fine without any plan or savings.

Here are 6 crucial steps to guide you in your retirement planning, to let you enjoy financial security in your golden years.

1. Start to save now, no matter what

In fact, the earlier and sooner you do this, the better. The compounding power of interests on your money's money is ....tremendous.....

Don't delay or procrastinate your plan to save, anymore.

Stash away a portion of your income by contributing it to a good retirement plan, like the 401k or the Individual Retirement Account (IRA).

Get an employer who will match part or all of your savings in a contributory plan.

2. Work as long as you can at the highest salary you can get

The longer you work, the more you can stash away for retirement. And the older you're when you retire, the fewer years of retirement you'll have to fund.

3. Understand the effect of divorce and marriage on Social Security benefits

If you divorce, you're entitled to Social Security payments equal to 50% of your ex-husband's benefits, if you were married for at least 10 years. You'll lose that benefit if you remarry, though you'll be entitled to collect payments based on your new husband's benefits. A widow is entitled to her late husband's benefits as long as she doesn't remarry before age 60.

4. Get out of debts

Get a good grasp on your financial position: assets and debts, and start to save for your future by paying down debts and do budgeting.

If you've credit card debts, get out of them fast because the interests charged on overdue payments are terribly high and the debts drain away your ability to save.

5. Learn about your finances

If you're married, make sure that you and your husband each understand what you own and what you owe, and use insurance to plan for the possibility of death or disability.

6. Invest smartly and wisely

Don't just let your money lay idle. Invest in a portfolio mix of stocks and bonds that'll give you long-term growths with reasonably lucrative returns.

If you're young, invest more of your portfolio in stocks as they generate higher returns though you've to brace for higher risks.

As you become older, switch more toward bonds for they're relatively less risky and definitely would yield concrete returns for you (though not as high a return as in stocks).

Well, like it or not, retirement planning for women is important.

Don't have this idea that there will be a Prince Charming who will take care of you......

Start to plan for your retirement. You'll be financially secured in your golden years.

Do you know that lots of women plan smartly, leading them to enjoy total financial freedom, including an early retirement? Cecelia Yap shows you how here: http://www.perfect-body-toning.com/my-passion.html

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