It's a sobering statistic: 64% of women have no back-up plan if they're forced to retire early, according to a Transamerica study1. An unexpected early retirement can create major challenges for women if they're not prepared.
To avoid this dilemma, here are four strategies to help:
The usual wisdom about retirement planning—participating in an employer's 401(k) plan, maximizing contributions as early as possible, and taking advantage of employer matching—are still vital to building wealth for retirement. However, these specific strategies can bring women stronger financial security if retirement arrives earlier than planned.
This material is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
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1 Catherine Collinson, “17 Facts About Women's Retirement Outlook," Transamerica Center for Retirement Studies, March 2017 http://www.transamericacenter.org/docs/default-source/women-and- retirement/tcrs2017_sr_women_and_retirement_17_facts.pdf
2 Dana Anspach, “2018 IRA Rules – Limits on Contributions and Income"
3 Kelley Holland, “The Biggest Mistake That Women Make on Social Security Benefits," CNBC.com, August 2015https://www.nbcnews.com/business/retirement/biggest- mistake-women-make-social-security-benefits-n407816
4 Rebecca Lake, “4 Reasons Women Should Consider Hiring a Financial Advisor," U.S. News and World Report, August 2016 https://money.usnews.com/investing/articles/2016-08-02/4-reasons-women-should- consider-hiring-a-financial-advisor