The Pretirement Playbook For Busy Women

Planning for retirement can seem overwhelming, but it’s never too early to start. Women in the workforce often experience the gender pay gap, career pauses for childbirth and caregiving, and longer life expectancies, which is why it’s so important for them to have a plan of action when it comes to saving. 

And even if you are getting closer to your retirement years,it’s not too late to set yourself up for the win. Following a clear retirement savings playbook is key for  people who want to progress toward financial security in their later years, and Her Agenda is here to give it to you step by step. This playbook draws on information from The Ad Council and AARP’s ‘This Is Pretirement’ campaign and serves as a practical guide that will help steer women who are not sure where to start in the right direction. 

Pretirement refers to the period in people’s lives – typically during their 40s and 50s – when they are closer to retirement than they are to the start of their career and beginning to plan for the next phase of their life. Planning for retirement can feel overwhelming, and many people don’t know where to start. With free tools and resources, This Is Pretirement empowers individuals who are beginning to look toward their retirement years to financially plan with confidence.

Pretirement planning can be an empowering way to set yourself up for future financial success. Planning can take the form of setting up an emergency fund, paying off major debts, and understanding your  different retirement saving options.

According to an AARP survey, roughly one in five adults have no retirement savings at all. Additional research shows that just 49% of Black women have retirement savings compared to 61% of U.S. adults overall.

The survey also shows that well over half of U.S. adults (59%) are worried that they will not have enough money to last in their later years. By taking steps toward planning for retirement with ThisIsPretirement.org, people can feel more prepared and ready for retirement.

Planning for the future is important, and setting clear and actionable goals can help you work toward the win. If you’re not sure where to begin, take the free quiz at ThisIsPretirement.org to get a personalized retirement savings action plan to help you meet your long-term goals and maximize savings opportunities. 

The quiz includes questions like, “What are your current feelings about your ability to save for retirement?” “When it comes to planning for retirement, what are you most nervous about?” and “How would you describe your retirement savings journey?”

With an understanding of your financial situation and a clear  action plan, you can start taking control of your financial future. 

Her Agenda has adapted the Pretirement resources found on ThisIsPretirement.org into a playbook checklist that involves automating your savings, building an emergency fund using side gigs, developing a retirement budget, planning for healthcare, and getting the most of your retirement benefits. 

When it comes to ensuring you get the most out of your retirement benefits, do your research and figure out what your priorities look like. Talk to your employer about your retirement plan and see what is possible to renegotiate. Get a full understanding of your company’s policy and what is typically offered for someone at your level. 

Contact your HR representative and ask about your company’s match for its retirement savings program. If you can, contribute enough in your 401(k) to get the full employer match.

Automating your savings is an effective step toward retirement.You can set up automatic transfers from your paycheck to your retirement account to start building momentum. 

Determine how much you can set aside for retirement and also check with HR to make sure you are enrolled in your company’s retirement savings plan, if they have one. From there, work to create a manageable portion of your paycheck to your retirement account. Increase that portion by 1-2% percent each year based on your income, if possible.

Doing this will help develop a healthy consistency and allow you to save without having to think or procrastinate. To start implementing this method, contact your employer and fill out a direct deposit form. While filling out the form, split your deposit so that a portion goes to your retirement or savings accounts and the rest deposits into your checking account. This will also instill financial discipline and make saving easier and low effort. 

Benefits of automating your savings also include maximizing your compound interest, reducing impulsive spending, achieving certain financial goals, and keeping your transfers on a fixed schedule that can always be adjusted. Another benefit to automating contributions is that it can make it easier to max out your employer’s match if your company offers a 401(k) or other plan matching options. Contributing enough to get the full match will vastly increase your savings, earning you easy free money.

Once you start to develop a strong savings routine, follow up with additional measures to incorporate into your plan over time. A step in the right direction is to first build an emergency fund. 

This fund should include at least three to six months of living expenses in an easily accessible savings account. A way to contribute to this fund is by earning extra cash doing something you love to do. A side gig or passion project that is low maintenance is a smart way to build up an emergency fund without having to use money from your main job. This emergency fund will help from withdrawing from your retirement account early, and provide a much-needed safety net when you need money for an unexpected  expense.

A helpful long-term strategy is to create a retirement budget. Design what you want your retirement life to look like and work towards making it a reality. Calculate just how much you would need to save each month. This means taking into account your costs for housing, healthcare, leisure, and personal luxuries. Use online calculators such as AARP’s Retirement Calculator or seek counsel from a financial advisor to make sure that you are on the right path, and figure out what’s obtainable for you.

As the life expectancy of women is longer than men, women face higher healthcare costs in retirement. Looking into a Health Savings Account is a powerful play that places you two steps forward with a triple tax advantage on medical expenses and long-term health insurance.

Are you interested in learning more tips like the ones from this playbook? Visit ThisIsPretirement.org to learn more about the small steps you can take toward taking control of your financial future, today. Your future is rooted in the present, and you deserve to enjoy all that you’ve worked so hard for. 

[This article was created in collaboration with The Ad Council and AARP.]