For Bare, this has been one of the most empowering things she has ever done. “It has led to less anxiety, less depression and it’s made me feel completely in control of my future,” she says. If you’re ready to do a check on your own financial plans, read on for what Gen Z, millennials, Gen X and boomer women need to know right now about retirement planning and goal setting.
Gen Z: It’s not too early to set aside extra funds
Yes, retirement is decades away—the oldest Gen Z’er is 24 years old—but you’ll be ahead of the game if you squirrel away money now. Your best bet even if you have very little to save: Automate your savings deposits and then set up small increases of one percentage point or more every six months. “Regardless of the deposit size, the power of compounding will pay off in the long run,” says BobbiRebell, a certified financial planner and personal finance expert at Tally, a tech company that helps people de-stress about finances.
Millennials: Focus on debt reduction
Now that you’re between the ages of 25 and 40, make it a goal to do two things: Keep setting aside retirement funds and pay off your debts. “List every single debt on a piece of paper and write down the corresponding interest rate,” Rebell says. “Focus on debts with the highest interest rates in this order: Credit cards, personal loans, student loans, auto loans and mortgage.”
Gen X: Continue to crunch numbers
In your 40s and early 50s, turn your attention to assessing whether you’ll have enough money to live on when you retire and remember that there’s still time to add to your retirement cushion, says KatharineEarhart, co-founder of Fairlight Advisors, a woman-owned financial advisory company in San Francisco. “If you’re 50 years old or older, use your retirement plan’s catch-up contribution,” Earhart says. “This enables you to defer an additional $6,500 in pre-tax savings every year.”
Boomers: Get your house in order
If you’re 57 to 75 with adequate retirement savings, now’s a good time to pay attention to legacy planning, says MyriahLipke, a certified financial planner at Stone Pine Financial Partners in Media, Pennsylvania. “Women often push this to the back burner,” she says. “But it’s really important to plan for how your assets will be delivered to beneficiaries. It’s the equivalent of cleaning your memorabilia out of the attic versus leaving it for your children to figure out.”
