6 ways women can save money for retirement

Women are multitasking and management queens. The pointers here can easily be managed by all women along with juggling their current tasks at hand.

Superheroes are fictional whereas superwomen are real. They are all around us!

Sophie Tucker, a famous American singer and entertainer, was definitely wise with her money. She was famously quoted as saying, 'From birth to 18, a girl needs good parents. From 18 to 35, she needs good looks. From 35 to 55, a good personality. From 55 on, she needs good cash. I'm saving my money.'

It'll be worth our money to follow suit!

Women from all walks of life, home makers to entrepreneurs, are adept at managing cash flows. They run their homes efficiently and manage bill payments like a pro. The amount of inflow may vary but they make sure that things keep moving and nothing comes to a standstill. Of course, a lot of thought and planning goes in to manage inflows and outflows. And now, it is time to channelise some of that financial management to saving for the future. Get started with these quick tips!

PPF will stand by you

PPF is the first choice that comes to mind when we think of investments related to saving tax. It is a long term debt scheme offered by the Government of India. PPF offers handsome tax free returns and a higher rate of interest than bank deposits. What's not to love?

PPF account can be opened by any individual. So if you don't have it already, visit the bank and get one today! It is beneficial in numerous ways as mentioned above.

The corpus of savings amount created over many years under the PPF account, until your retirement age, will be substantial to make you feel financially secure.

Deposits will be your future money mines

This old way of saving money has not gone out of fashion. Earlier people used to stash away cash for rainy days, now we deposit them in a bank and earn interest. It is one of the best risk free and liquid options available today to save money. These factors compensate for the slightly modest returns offered by this investment option. By means of a recurring deposit, a small amount can be invested every month.

You will be surprised at how it will grow without even feeling the pinch of saving money. Also, draw up a deposit amount goal and keep working towards creating money deposits till you achieve it. Watch your future self, smile right back at you for making a wise choice today.

Create assets

Somewhere in between creating beautiful homes, relationships, career and work, the desire to create assets is lost. Almost subconsciously, most women assign that task to the men around them. They may even encourage their children to do so. But, what about their own?

It's time to stop relying on heritance and take charge of creating your own assets. Choose between the various alternatives like a piece of land, a second home, commercial property etc. Ascertain a budget and find one within your means.

Overcome the resistance, stretch your finances a bit and just do it. Gone are the days when jewellery was the only asset women had!

Link you retirement to the market

Today, we live in a dynamic environment. A change in macroeconomic factors around us have an impact on the equity markets. The risk and returns linked to investments in equity are high as well. Only playing on surf turfs, when it comes to investments, kills the changes of fetching glamourous returns on investments. In the long run, it may also prove inadequate.

Intelligent investments in equity, with calculated risks are definitely rewarding. Invest in blue chips and market linked retirement plans with a long term perspective.

Look at the loans

While saving up for the sunset years, do not skip on incorporating provisions for liabilities which need to be met. Check on the all the loans availed and the outstanding amounts. Analyse how long it will take to clear the loans with regular EMIs. Do you have sufficient inflows to meet these EMIs? If any of them are stretching right into your retirement years, then plan to save up and clear the dues beforehand. No one wants debt to be a partner during their best years!

Managing health and life

Everything in life makes sense only when you are enjoying good health. With age, we need to pay more attention to our health. Prioritise the finances accordingly so as to have sufficient provisioning to handle health and wellbeing related expenses. Invest in plans which will cover major health expenses, if they were to rise. Cash back life insurance plans are also a good option, wherein the cover is applicable up to a certain age. After which, the policy will start giving returns in the form of monthly cash back.

Here's wishing all women a very happy Women's Day and a financial secured future ahead!

Photograph: 401(K) 2012/Creative Commons

The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.