Mother's Day 2023: How working moms can plan retirement in better way

Mother’s Day 2023: Retirement planning can be a difficult process, especially for mothers who have to juggle multiple responsibilities while ensuring financial stability for their family's future. Whether one is a working mother or a business owner, one needs to create a solid plan, save diligently, invest wisely and build a comfortable and secure financial future. 

Here are some tips that can help mothers build a safe and secure retirement:

1. Start saving early

By starting early, mothers can take advantage of the power of compounding, which allows their investment earnings to earn even more earnings over time. 

According to Anup Bansal, Co-founder, Scripbox, even small contributions made early on can have a significant impact on retirement savings. By contributing regularly and consistently, mothers can accumulate a substantial amount of savings over time. Plus, starting early can help them establish good saving habits and build momentum toward achieving their retirement goals. This also sets an example for children to learn financial planning from their mothers.

2. Diversified portfolio with a determined plan 

To make a retirement plan, it is significant to consider factors such as estimated retirement age, the kind of lifestyle one wants to maintain, inflation, and expected expenses after retirement. After having a proper plan, one can move on to thinking about where to invest. It is crucial to make sure that one diversifies the investments to reach the financial goal. 

“Mothers can consider a mix of stocks, mutual funds, bonds, and other investments that match your risk tolerance and investment goals,” said Bansal.

3. 40:30:30 rule 

Mothers can effectively save more money for retirement by avoiding unnecessary expenses. For this, they can create and stick to a budget that allows them to save for retirement while meeting their current financial obligations. 

Follow the rule 40:30:30 which allocates 40 per cent of the income to necessities, 30 per cent to desires, and 30 per cent to savings. 

4 Plan revaluation 

It's crucial to reevaluate the retirement plan regularly, as life can be unpredictable, and circumstances may change over time. By reviewing the plan periodically, one can ensure that they are still on track to meet their retirement goals.

According to Bansal, during the plan review, take time to assess the financial situation, including income, expenses, and savings. Consider any changes that may impact the retirement plans, such as planning another child, a career change, or unexpected expenses. Mothers may need to adjust their savings goals, retirement age, or investment strategy based on their life stage to ensure that they are still on the right track.

5 Health is wealth 

It is necessary to ensure adequate health coverage, as it can protect mothers and their families from unexpected medical expenses that could potentially jeopardize financial stability post-retirement.

According to Aniruddha Sen, Co-founder, Kenko Health, for working mothers, the employer's health insurance plan is a good place to start. For that one needs to review their plan to ensure that it covers healthcare needs adequately, including doctor visits, prescriptions, and specialist care. 

Whether one is self-employed or has a part-time job, they can purchase an individual or family health insurance plan. It is essential to compare plans to find one that meets the needs and budget.

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