Women Face a Savings Shortage
Study finds women have less saved for retirement than men
We've long heard that women have some significant ground to make up when it comes to saving for retirement and a new study from BlackRock, an asset management firm, doesn't reveal anything to turn the tide.
The BlackRock study analyzed the savings and investment habits of 27,000 people across the world. The report unveiled some unsettling news for women. Only 53 percent of working-age women are currently saving for retirement, compared to 65 percent of working-age men. Also, 68 percent of women keep their portfolio in low-risk, low-return funds, like treasury bills and certificates of deposit (a mistake if you're looking to keep pace with taxes and inflation, not to mention the market). Only 59 percent of men take the same approach. This leads to trouble when women approach retirement age. The study found that women ages 55 to 64 have an average of $81,300 saved, compared to $118,400 for men.
These numbers aren't a good sign, especially considering women typically live longer than men. "Blessed with longer lives, it's all too likely women will come to find that the retirement years last longer than they had planned," Heather Pelant, a personal investor strategist for BlackRock, told CNBC.
Despite this savings shortfall, there was some good news for women; the younger generations are picking up the pace. The study found that 31 percent of millennial women described themselves as active investors, compared to just 15 percent of baby boomer women. Also, 41 percent of millennial women said they'd take higher risks to get higher returns, compared to just 22 percent of baby boomers. Perhaps all those financial education efforts are paying off after all.
Article was written by Chris O'Shea and provided by SavvyMoney®.