Bad retirement planning, which tends to result in a shortfall of retirement funds, is common among a lot of American workers. Women seem to be hit harder by the recession and generally accumulate smaller nest eggs than men because of a number of factors.
Women usually make less money throughout their working years in comparison to men – this directly influences how much they contribute to retirement plans and accounts such as 401Ks, resulting in inadequate retirement funds. Giving birth and rearing children often stops women from pursuing their careers, temporarily or permanently, also interrupting their contributions to pension plans and Social Security. Lastly, statistics say that women invest more conservatively than men, meaning their portfolios don’t have as much potential for growth during their younger years, which is when investing should be aggressive.
Even women in the middle-income to high-income brackets are at risk of not having enough to retire on. The Social Security Administration reported that 17% of all single women aged upwards of 64 made less than $ 10,326 (the poverty threshold) 2 years ago.
Concerns about retirement security further multiplied because of the recession. A Transamerica Center for Retirement Studies survey of approximately 3,600 workers showed an increased lack of confidence in reaching retirement goals. 94% of all surveyed weren’t sure they would be able to live a comfortable retirement, while 77% of all female respondents said their savings and investments would not amount to ample retirement funds. Despite more women having access to employer-sponsored retirement plans last year, only 70% of these workers participated.
If you’re worried about not having enough to live on when you retire, there are a few things you can do to build retirement security despite the barriers you face. Start by getting educated and rethinking your financial strategies. Consult with your financial advisor to know more about how you can invest better and make the most out of your retirement plan. BOLA TANGKAS