Why Women Save Less Than Men for Retirement

3:20 pm Uncategorized

confused woman e1297289954989 Why Women Save Less Than Men for RetirementAccording to a study released last week by LIMRA, a research and consulting firm serving insurance and financial services companies, women save 40 percent less than men for retirement – despite the fact that women live longer and need more retirement savings.

The study, Gender Matters: Retirement Savings of Working Men and Women, was the result of interviews of 2,500 private sector employees who were eligible to participate in a defined contribution plan.  It found that the average plan balances of working women over the age of 50 was on average $63,000 less than their male counterparts.  This was largely due to the fact that women earn less, and they also defer contributing to retirement plans at a higher rate than men.  In addition, the study found that men are more likely to think saving for retirement is important than women.

The study also revealed that women’s financial knowledge can be an impediment to saving for retirement.  It found that only 14 percent of women surveyed felt they are knowledgeable about investments and financial products, compared with 29 percent of men.  Overall, almost 75 percent of men felt at least somewhat knowledgeable about financial products and services, compared with 54 percent of women.

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