The majority of women in the United States are failing to save enough money to fund their retirement according to a recent report. While there are many people both male and female who are struggling when it comes to retirement funds, the report shows that women in particular are experiencing problems and this stems from range of different factors and issues.
A study was carried out by the Transamerica Center for Retirement Studies earlier this year, and the data in the report showed that while 62 percent of females said that they were trying to save towards their retirement only 15 percent felt that they were saving an adequate amount of money. More worryingly, around 22 percent of females were found to be saving little or nothing towards their golden years equating to a massive 85 percent of women that were not saving enough.
A variety of contributory factors
Experts that were involved with the research said that there were a number of different contributory factors that were impacting on the ability of many women to save money towards their retirement. One of the key factors that was highlighted was the fact that many women are on lower pay when it comes to their work – this is often the case even if they are doing the same job as a male counterpart. This not only affects their ability to save in the short term but will also impact on their social security when they do retire, which poses additional problems when the time to retire comes around.
Another factor that was mentioned in the report was the fact that many women take a lot of time out of work to have and raise children, often until the child is old enough to start school. Some decide not to return to work at all after having children. An official from the Women’s Institute for a Secure Retirement said that many women focused on their kids before themselves, not just in terms of looking after them rather than returning to work but also in terms of saving money for their children before thinking about saving money for themselves and their own future.
One of the other key factors mentioned in the report was that women tended to be far more cautious than men when it came to making investments, as many felt that they did not have the knowledge or the confidence when it came to making decisions in relation to investments.
Experts also pointed out that the life expectancy of women is longer than that of men, which means that females need to put aside more money for their retirement in order to fund this extra time because their retirement savings will have to last them longer.