ShareThisCatherine Collinson, president of Transamerica Center for Retirement Studies elaborates on the center's retirement-readiness recommendations for women:
-- Calculate your retirement needs. There are so many online calculators, including from Transamerica, AARP (no matter your age), personal finance websites (SmartMoney to Kiplinger's), banks, retirement plan providers, brokerage firms. And they're free.
It's important to try more than one. You'll notice they yield different results. A lot of calculations are based on assumptions, like how long you expect to live. It's really important to compare and contrast.
-- Write down your retirement strategy. Like diet and exercise, if you document (your goal), it has psychological benefits. You're making a contract with yourself. Especially if, starting in your 20s and 30s, you want to track and monitor your progress over time. Have that document so you can make necessary adjustments along the way.
-- Get educated. There's such a wealth of material in personal finance columns, websites, continuing education classes. You want to be able to ask the right questions to guide your decision-making. If you're near retirement age, understand Medicare and Social Security benefits. It's complicated, but there are resources to get you through.
-- If your employer has a retirement plan, participate. Even if you feel you can't afford to, at least contribute enough to get your employer's match.
-- Consider retirement benefits at any job. If your employer doesn't offer a plan, ask for one. The worst that happens is they say no. But they might say yes. If you're evaluating job opportunities, factor in the benefits package, such as a 401(k) match.
-- Have a backup plan. Few men or women have a backup plan in case they can't keep working. What would happen if you were forced into retirement sooner than expected? Have a conversation with family and friends. Know where your finances stand. How would you handle health care coverage? If it's necessary to downsize, what are the best ways? Have ideas and back-pocket solutions in case you're forced into retirement, either for health reasons or job loss.
(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
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