First, women typically live longer than men. This means they are statistically more likely to live alone at some point in their life than men are.
Add on top of this the fact that women typically marry a man that is older than them. This can mean they will have an even greater likelihood of outliving their spouse and being single at older ages.
Since women live longer than men, it is even more important for them to do proper retirement planning to make sure they don’t outlive their savings.
Second, women typically earn about two-thirds what men do. This makes it harder for them to put money aside for retirement.
Third, women may be more disciplined investors over the long-term than men are, but they typically are reluctant to take much risk in their portfolio. This makes it harder for their portfolios to have the potential to grow as much.
Given these 3 big problems, it is no surprise that half of women feel worried about having enough money to last them throughout retirement. This is according to a Fidelity Investments survey recently done.
So How Can Women Increase Their Retirement Confidence?
Here are 3 ways women can increase their confidence:
- Invest in learning about financial planning
- Learn some basics of portfolio allocation, i.e. the right mix of stocks and bonds
- Calculate how much you need to save for retirement with free online tools
The payoff can be huge according to Annamaria Lusardi, econ professor at Georgetown University. According to her, people who plan for retirement end up with 3 times the amount of wealth as non-planners.
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