Black women may not be equipped with the necessary tools or knowledge to retire comfortably. According to a recent study by Goldman Sachs, only about one in two Black women have retirement savings. With 56 percent of Americans in the workforce thinking they’re behind, it is important to begin effectively saving for retirement.
Myah Moore Irick, private wealth manager, says it’s never too late to start planning and saving for retirement. “Sometimes we, understandably, get anxious that we haven’t started early enough,” she told 21Ninety. “That frame of mind only serves to keep us from moving forward and using the time and resources that we do have to grow wealth.”
Irick shares some of her top tips for proactively saving for retirement.
Assess Your Unique Needs
The amount a person saves for retirement is dependent on many factors. It is unique to each individual.
“As Black women, during our lifetime and even in retirement, we tend to have different needs,” Irick said. “We also tend to care for others throughout our journey.”
When considering what to save, she encourages asking yourself questions. Identify how much you are able to contribute monthly, your anticipated future living costs and your desired lifestyle. The answers to these questions will help you begin to create a plan to work toward saving for retirement.
Set Clear Goals and Create a Plan
A financial advisor can help you to develop this plan, but you can also create a simple one yourself. Define your objectives and retirement goals.
Establish a Budget
Your budget should outline your income, expenses and your savings goals. Irick says that this is an important exercise because sometimes people are surprised to see where their money goes. Simple changes can maximize your future savings for retirement.
Take Advantage of Employer-Sponsored Retirement Plans
Be sure to contribute enough to maximize your employer’s match. It is free money, as you stay with the company. If you don’t have an employer-sponsored retirement plan, think about opening and funding an IRA.
Invest Wisely
Diversify your investments across different asset classes and based on your risk tolerance. Irick explains that financial advisors, like herself, can help with this. There are also other resources available in books and online to do it yourself.
“Starting now, being disciplined and staying informed are key principles that can help pave the way toward a more secure financial future,” Irick told 21Ninety.