Saving for retirement during your working years is a good way to help ensure that you’ll have enough income at your disposal during your senior years. But data from the Transamerica Center for Retirement Studies finds that 57% of women feel they don’t have enough income to save for retirement. If you feel as if saving for retirement has been a struggle, here are some tips to employ.
1. Fight for higher wages
In 2022, women earned an average of 82% of what their male counterparts earned, according to Pew Research Center data. And that’s a hard shortfall to overcome.
That’s why it’s important to do what you can to fight for higher wages. Research salary data for your role using sites like Glassdoor and Salary.com. If you can prove that you’re statistically underpaid, that might prompt your employer to boost your salary.
Also, see if any of your male colleagues with similar roles to yours are willing to be open with you about their pay. If you find out that you’re earning less, that’s information you can bring to your management team.
According to the National Labor Relations Act, policies that prohibit employees from discussing wages are generally unlawful. So if you’re worried about backlash for talking salary with your coworkers, well, don’t be. And if your employer does attempt to retaliate against you, you may be in a position to take legal action.
2. Get a side hustle to grow your income
Joining the gig economy could be your ticket to boosting your income. And the more money you earn, the more you might have available for your individual retirement account (IRA) or 401(k).
Not only that, but a side hustle could make it possible for you to pad your emergency savings. That could be crucial in helping you leave your existing retirement funds alone, rather than raiding them for an unplanned expense.
One thing you may want to do is get a side hustle that helps you grow your skills. That could make it easier to boost your overall income by pursuing better-paying jobs. For example, a company looking for data entry may be willing to teach you some basic Excel skills you may be lacking that could come in handy for your broader career.
3. Snag your full workplace 401(k) match
If you have access to a 401(k) plan with a match through your job, it’s important to do everything in your power to claim that match in full. That could translate into a lot of free money for your senior years.
Your workplace match is a sum you can invest over time. So if you get a $3,000 match this year that earns an average annual 10% return over the next three decades, which is in line with the stock market’s average, that employer match will eventually add over $52,300 to your retirement plan balance.
If you have to cut back on some expenses to be able to contribute enough to claim your employer match in full, just remind yourself of how much that money could grow over time. It should help soften the blow.
It’s important to set yourself up with a nice nest egg so your retirement can be free of financial worries. These moves are worth employing if socking money away for retirement in a brokerage account has been a struggle thus far.
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