Retiree News

Retirement presents a unique set of challenges for many women, such as historically lower career earnings and longer life expectancies. Consider these strategies to boost your financial security and wellness.

1. Diversify Your Income Streams

Challenge: Women often face income disparities, earning less than men throughout their careers. Women of color face greater disparities, with Black and Latina women who hold bachelor’s degrees earning 65% of what white men earn with the same education, according to the U.S. Department of Labor.

Solution: Bolster your financial resilience by drawing from multiple income sources when possible. As a VRS retiree, you have a pension and Social Security. You may also consider returning to work part-time for additional financial security. But before you do, be sure to review VRS’ return to work rules.

You may have a hobby or skill, like jewelry-making or writing and editing that you could turn into a business – research how you can monetize something you already love. If you have extra room in your home, is it feasible to take in a tenant or create a short-term rental space? Rental income, if available to you, can help you maintain financial stability. Before diving in, work through a simple business plan, talk with others who are doing similar things and grow your knowledge by tapping into related articles and videos in myVRS Financial Wellness. Start by reading “Money-Making Ideas for Retirees Who Still Want to Work,” a popular article under the Living in Retirement topic.

2. Prioritize Healthcare Planning

Challenge: Longer life expectancy means higher healthcare expenses in retirement.

According to the National Center for Health Statistics, at age 65, women can expect to live another 20 years compared to 18 years for a man. They’re also more likely to be living on their own; 46% age 65 and older were married compared to 71% of men. More than half of women age 65 and up (57%) will need long-term care, according to the U.S. Department of Health and Human Services.

Solution: Ensure you have comprehensive health insurance coverage. Most medical plans don’t cover long-term care services such as at-home care or nursing home care. These are necessary expenses for many that could quickly deplete savings and retirement income. Consider long-term care insurance to manage these potential costs.

Most VRS retirees age 75 or under are eligible for the Commonwealth of Virginia (COV) Voluntary Group Long Term Care Insurance Program, which can provide more affordable assistance with long-term care costs in some circumstances. Be aware that applying earlier for many long-term and other healthcare plans can save you money.

3. Manage Debt Wisely

Challenge: Debt can erode your retirement savings and financial security, leading to higher stress levels and a greater impact on your wallet because of high interest and unexpected fees.

Solution: Minimize high-interest debt by making monthly payments on time, and making additional payments when you can. Reducing debt frees up more income for essential expenses and leisure activities over time. Learn more about debt management and other credit strategies by reading “Everything You Need to Know About Managing Debt” in myVRS Financial Wellness. Log in through your myVRS account to continue learning with a course on getting out of debt or living in retirement. Or view the list of more than 25 courses to find one that suits you.

4. Estate Planning

Challenge: If something unexpected happens, like an illness or accident, having your records organized can significantly assist you or those responsible for managing your affairs.

Solution: Keep your estate plan up to date. Use the Get Organized guideto expedite the process. To learn more, take the course on preparing an estate plan in myVRS Financial Wellness.

5. Seek Financial Education

Challenge: Lacking financial independence can make it difficult to obtain your ideal retirement lifestyle. It’s important to know how to make key decisions about your retirement income, emergency savings and investment diversification.

Solution: Educate yourself about financial matters and resources tailored to retired women. Attend Certified Financial Planning webinars or consult with CFP professionals who understand your unique needs.

6. Stay Informed

Challenge: Economic conditions and changes in tax laws can impact your retirement income.

Solution: Stay up to date with financial news and resources by reading the latest articles from reputable sources or signing up to receive email newsletters from your bank and other personal finance institutions. Don’t forget to check the VRS homepage and Newsroom for important information, such as cost of living adjustments and legislative updates. Regularly review and adjust your financial plan to align with changing circumstances.

7. Join Supportive Communities

Challenge: Women in retirement face not only financial considerations but also the emotional toll of potentially outliving spouses. Loneliness and social isolation in older adults can lead to increased healthcare risks, including the risk of dementia and other serious medical conditions, according to the Centers for Disease Control and Prevention.

Solution: Connect with local senior groups or women’s organizations. These communities offer support, friendship and valuable resources. Look for volunteer opportunities to help others. See also the “Rewire” feature in this issue. By tailoring these strategies to your unique situation and taking advantage of VRS services and other resources in your community, you can navigate retirement with resilience.