Women, you already know life isn’t fair. It’s the same way with retirement savings, and we’re seeing newly published proof of that.
When it comes to how men and women save for their golden years, new research by retirement giant Vanguard discovered two conflicting trends:
- Women are more conscientious about joining their employer’s 401(k) plans. Fewer men than women join unless there’s automatic enrollment. The biggest difference is in the $50,000 to $75,000 income range, where 81% of women only keep 401(k) paredcount 67% of men.
- Weirdly, however, men tend to have more retirement savings than women. The average man has $93,500 in his 401(k) account, the average woman $70,000.
How can that be? It’s because men tend to earn more money and because men set aside more of their paychecks for retirement than women do.
So, how can women close the gap in retirement savings? We have seven strategies for you to follow.
What Women Are Up Against
Like we said, life isn’t fair. Here are three reasons why women’s retirement savings tend to lag behind men’s:
- Working women are more likely than men to interrupt their careers to take care of family members, According to the US Department of Labor. They end up with a work gap, missing potentially years of employment when they could have been contributing toward their retirement.
- Women are more likely to work in part-time jobs that don’t qualify for a retirement plan, the Labor Department says.
- There’s a persistent wage gap. For every dollar a male full-time worker earns, women make 83 cents, According to the Bureau of Labor Statistics. (There are plenty of contributing factors to this phenomenon, but don’t let one be that you never asked. Here’s how to negotiate your salary and benefits.)
The Smartest Ways to Overcome That Gap
Here are seven strategies women can use to save more for retirement.
1. Get Started, Pronto
If you aren’t saving for retirement, start ASAP. The…