Women are Saving Less than Men
Saving for retirement is critical for everyone. It is especially important for women. Women tend to live longer and make less than men but save, on average, 40% less than men. Women’s defined contribution (DC) plan balances tend to be 60% of men’s balances, which can be concerning due to the longevity of life and disruptions for caregiving. Capitalizing on savings opportunities is of great importance while working. On average, working women 50 or older have a DC plan balance that is almost $63,000 below working men of the same age.
It seems that younger women are saving more for retirement, which could partially be accounted to the earnings gap decreasing from what it used to be. It could also be due to the increasing number of women who are gaining financial knowledge. However, the lack of financial knowledge can be an impediment to both women and men, with only 29% of men and 14% of women feeling knowledgeable about their finances. Those who tend to be more informed tend to save more and manage their savings better. Even though more men seem to be knowledgeable about finances, there is still a disparity of those overall that need to be more educated when it comes to finances.
To read more on this article, visit Retirement Conundrum: Why Are Women Saving Less Than Men?.
For more information on retirement planning as well as estate planning, contact our Jacksonville Florida estate planning law firm.
