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More than half of women — 55% — say they don’t know if they have enough money saved for retirement, according to a new poll from the World Economic Forum. They also say they don’t understand their personal finances.
Retirement planning can be stressful for anyone, but women may face more struggles, according to the poll of about 400 respondents. The gap between men and women’s pensions is 34% in the U.S. and 40% in the U.K., the World Economic Forum reported.
Women face other obstacles for their financial security, too. Family caregivers are prominently women, who may leave the workforce to care for children or other family members, thus lowering or entirely eliminating their income (and consequently, their Social Security benefits when it comes time to claim). They also live longer on average than their male counterparts, meaning whatever they do save must last longer. And some financial advisers have found women shy away from financial conversations, leaving investment decisions to their husbands during their meetings.
See: ‘It’s about making her feel heard’: Women find many financial advisers lack this key skill
The World Economic Forum echoed these reasons in the report, adding that pay inequity, no credits for maternity leave or caregiving and a priority on spending for the family and home in the present also contributed to the gap.
The pulse poll was subject to limitations, including some demographic sample sizes to be too small to be statistically representative, the group said. “Despite these limitations, the findings can help start a conversation about the challenges faced and can contribute to the development of solutions for the population this group of respondents represents.”
Still, women can improve their retirement security in a few key ways, such as having honest discussions with family members about the expectations of caregiving, brushing up on information about current retirement plan investments and looking into working with a qualified financial professional, even on a once-annual basis. Quick changes include automating contributions toward savings, which can be done for 401(k) plans and other types of accounts, and keeping track of current income and spending, which can help spot mistakes, unnecessary expenses and more money available to save.
