Many of us aren’t saving enough for retirement. This is especially true for women and that’s a problem.
The SoFi 2023 Ambitions Survey found men have median retirement savings that are about $40,000 to $60,000 higher than women’s savings. And more women than men aren’t saving for retirement at all.
Let’s break it down.
Wage gap: Overall, women still earn less than men, which also means they have less to funnel into retirement savings. And that’s assuming both groups are prioritizing retirement in the same way.
In and out of the workforce: Investing in an employer-sponsored 401(k) is a top way to save for retirement. But women still leave the workforce due to caregiving responsibilities, which can mean missing out on years of contributions.
In addition, women are more likely to work part-time jobs, which often have limited access to retirement plans.
Lacking confidence: Investing and setting financial goals more broadly is a confidence game. And women often feel less confident in their money choices. This lack of confidence can cause women to be overly conservative with their investments, including holding more assets in cash rather than investing them where their funds have the potential to grow.
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