Question: Women who work full time, year-round earn on average 20 percent less than men. Some women also leave the workforce to care for children and family members, resulting in less savings in a 401(k) or IRA, and lower Social Security benefits. What do you suggest these women do to compensate for this income gap?

Answer: It is important to start saving and investing early. If possible, maximize your 401(k) and traditional IRA to take advantage of tax-deferred benefits. And, while a Roth IRA is funded with after-tax dollars, withdrawals you make are tax-free. If you are in a position to defer taking your Social Security benefit after reaching full retirement age, you will gain 8 percent in your benefits for every year you wait until age 70.

Understand that if you are too conservative, like investing only in certificates of deposit, you may not have enough money for your financial security or you may outlive your funds. Inflation will affect the purchasing power of your money.

Q: What could this look like for a woman who begins saving for retirement at 26? What about 36?

A: If at age 26 you save $100 per month until you retire at age 67, and assuming a 5 percent rate of return (which is generally used assuming a diversified portfolio of stocks and bonds), your money will grow to $153,408. If you wait 10 years, until you are 36 years old, and you save $100 toward your retirement, you would have only $84,913, which is $68,495 less. If you wait until age 36, you would need to save $181 a month to have $153,408 in savings.

Q: How can I know whether I will have sufficient funds to be financially secure in my retirement?

A: Gather information on your assets, including investments, real estate, IRAs, 401(k)s, pensions, annuities and life insurance. Itemize your expenses, including mortgages, credit card debt, health insurance, transportation, entertainment and charity. Create a budget projecting how long your money will last. Be sure to consider inflation of expenses as well as an expected rate of return on your investments.

When providing estimates on expenses, keep in mind that upon retirement you may have fewer costs associated with work-related expenses such as transportation or clothing, but this reduction is often offset by an increase in entertainment.

In creating your analysis, take into consideration that you may have some significant expenses during your retirement such as home maintenance or long-term care. You will also want to take into account that your travel expenses may reduce as you age.

Q: How do I achieve financial security if I make just enough money to keep up with expenses?

A: One way to grow your wealth is to minimize your expenses. Monitor your expenses on your next shopping excursion and ask yourself, “Do I need it or just want it?” Consider your expenses in two groups. One is fixed expenses such as mortgage, rent, transportation, food and medical. The second is discretionary such as entertainment, vacation and your next “little black dress” or the “it” bag or shoe of the season.

Q: Statistics show that women live an average of four to eight years longer than men. How do some women prepare for living independently at that stage in life?

A: Plan now and make sure you have your key documents in place such as a trust and will.

A trust allows you to control your assets while you are alive and avoid probate (court) upon your death. The probate process takes time and can cost 5 percent of the value of your estate. Probate can also interfere with the management of your assets, such as a family-owned business and your investment portfolio.

A will is the document in which you name your executor, someone who will manage and settle your estate. You can also appoint a legal guardian for minor children. If you die intestate (without a will), the state will appoint an administrator and guardian for you and also distribute your property according to the state’s laws.