Preparing for retirement is an essential and ongoing task that should be considered as early and often as possible. While challenging for anyone, retirement preparation can be especially daunting for Latinas. Many Latinas face challenges such as income inequality, lack of access to retirement benefits and healthcare, and cultural barriers. The following are five tips for Latinas to consider as they prepare for retirement.
1. Start Saving Early
Investment time is a significant factor in the total amount of money you will have available to you in retirement. The sooner you can begin saving, the better. Even a small sum added per month can make a huge difference over an extended amount of time. Do your best to create a habit of investing at least a small amount every month for retirement. Consider opening a retirement savings account,, like an IRA or 401(k), and make contributions regularly.
2. Educate Yourself About Retirement Benefits:
If you have access to employer-sponsored retirement benefits, take full advantage of them. If you’re self-employed, consider setting up your own retirement benefit plan. There are many resources available to help you understand retirement benefits, but not all will take into account the unique experiences and perspectives of Latinas in their approach. Look for Latina-centered resources, such as SHENIX, to make sure you are best prepared for retirement.
3. Plan for Healthcare Expenses:
Healthcare costs can be a significant expense in retirement. Especially if your current healthcare is offered by your employer, you will need a plan to cover these costs in retirement. Make sure you are contributing to your retirement savings regularly, and consider purchasing long-term care insurance. You can speak with financial advisors who may be able to offer you other resources and options to help plan for retirement healthcare expenses.
4. Consider Working Part-Time in Retirement:
For many people, making a gradual transition to full retirement is a good fit. In many cases, you can begin pulling your retirement benefits and continue to work part-time. This is a great way to supplement your income until you are ready to fully exit the workforce. Some companies offer healthcare benefits to part-time employees, so this can be an option to extend your access to healthcare as well. As much as most people are ready to retire, leaving the workforce after decades of work can be a big adjustment. Working part-time for a while can be a good plan to transition into this life change.
5. Seek Out Resources and Support
There are many resources available to help Latinas prepare for retirement. Look to your network for advice and guidance, and make sure to check out SHENIX®: an easy-to-use app that provides financial education, investing tools, banking services, investment advisory services, and more for Latinas.
No matter where you are in your career, preparing for retirement is essential. The sooner you begin, the better. Having the right tools, resources, and partners is more important than ever! SHENIX® is happy to be part of your network as you navigate your retirement.