Women Lag Behind Men in Retirement Savings

photo credit: neovain

Though women live longer than men, they typically earn less than their male counterparts. Of course longer lives and less pay makes saving for retirement difficult, and new studies show that women aren’t saving enough for retirement.

On average, women live 22 years after retirement, 3 years longer than the average male. Women are also likely to invest more conservatively, take extended periods of time off (without pay), and begin saving 2-4 years later than men. Indeed, for every $84,000 that men make, women make $57,000. On top of their existing salary handicap, women typically don’t take advantage of company savings-matching programs that go a long way toward building a solid retirement nest egg. However, the study also shows that approximately 90% of women are unsure about managing finances, making this problem even more severe.

Many companies have begun offering financial and investment guidance to employees, something that everyone should look into. Experts say that we should replace 126% of our salaries to maintain our current lifestyles after retirement; unfortunately, both men and women in America replace only 67%.

Instead of waiting until it’s almost too late, experts encourage women to close up the gap between their retirement needs and actual savings. With longer life spans and lower salaries, it won’t be easy, but with the right planning, it’s certainly achievable.

Tags: Retirement