When we talk about financial freedom for women, the topic is often comprehended as a current and immediate concept. Surveys show that the current generation of Germans between the age of 30 and 60 are well-aware of the Gender Pension Gap and the dangers of old-age poverty, but only about 14 percent of them are willing to save now for later. This is drastic, in parts owed to the continuingly low interest rates, in parts due to consumerism, and in parts due to the increased expenses in everyday life such as higher rents, higher electricity prices, and a steadily decreasing income rate. As much as we’d all love for financial freedom to become effective immediately, unfortunately it is a concept that has to planned and minded carefully. Financial freedom for women is a goal that can be reached by patience, foresight, and strategics only.
Asset Building Your Way Towards Financial Freedom
It’s not that people weren’t aware of the consequences they’re facing, when they think about their future. But it appears to be far too long ahead in their lives than to become a graspable concept they could get a hold of. We tend to procrastinate and put the idea of retirement planning for women off for as long as possible. The problem is that it actually cannot really wait.
Any woman who’s goal is to gain financial freedom, should start asset building immediately. And any woman you wants to be financially independent, needs to consider retirement planning for women from an early age. Because living financially free and saving for retirement are strongly intertwined. How so, you might ask. This is how:
Financial Freedom For Women
Financial freedom is nothing that can be achieved from one day to another. So every woman that’s dreaming of economic independence needs to strategically and precisely plan ahead. Depending on their financial situation and the investment products, the asset building period will take more or less time. So, as a rule of thumb, you might want to remember: who starts early will benefit early.
Retirement Planning For Women
In Germany the official pensionable age is 67. That’s late in life. And it cannot even be excluded that this age won’t be raised in the future. So whether you refuse to work till the age of 67 or whether you wish to keep your living standard as soon as you reach retirement, there’s no use of relying on public pension payouts. Considering the current development, you urgently need to save money yourself and find a way to multiply it.
They earlier you wish to leave your employment period behind and the better you want to live as a retiree, respectively, the earlier you need to start your personalized asset building and retirement planning. And this is how retirement planning for women and financial freedom for women are intertwined. Both demand you start as early as possible to benefit in the most favorable way.
Need help to start your own journey to financial freedom? FinMarie will gladly lend a hand — along with profound advice, competence, and a solution suitable for your situation, risk profile and individual financial goals! Contact us for a free assessment:
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These Factors Influence Your Asset Building
Apart from at what age you start saving for your retirement, there are other parameters that determine how long your road to financial freedom will be.
- The kind of investment product you choose stipulates the rate of yields.
- The risk your willing to run defines the ideal product, and, hence, the rate of yields, for you.
- The amount you’re able to invest monthly or one-off influences the type of investment.
- The duration of your investment, e.g. via a savings plan, affects your returns.
- The investment horizon and target you set dictate the types and yields of investments.
As you see, retirement planning for women and paving the way towards financial freedom for women, both need to be considered in a very sophisticated and careful manner. Financial freedom and living off a snug fortune later in life are closely interlinked. One can hardly be achieved without the other, so our plea is: please, stop wishing and dreaming, and start acting now. It’s for your own good.
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