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Only 19% of women are confident they’re saving enough to retire


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Women in the workplace have been particularly hard hit by the two-year lockdowns that began after the outbreak of coronavirus.

The gap in retirement savings between them and their male counterparts is now wider.

A survey conducted by TIAA questioned more that 3,000 people and found only 19% believe they are on the right track to retiring without having to run out of cash. The survey revealed that 35% of male respondents were more confident than this.

The gap in retirement readiness perceptions between women and men was nine percentage points. In 2022, the gap was 16 percent.

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Additionally, 31% said they had no plans to save for retirement.

Shelly Ann Eweka (TIAA senior director of financial plan strategy) said, “That struck my gut. Only 1 in 3 women has the ability to save money for retirement.” This is compared with 44% for men.

Covid is harder on women

According to the U.S. Census Bureau, there has been a long-standing gap in retirement savings between men and women.

The 2016 median household income was $47.244, which includes income from Social Security and retirement. according to a May 2020 paper from the National Institute on Retirement Security. The figure for men aged 65 years and over was $57,144.

In 2022, the average woman still makes 83 cents for each dollar earned by a male, which is an even greater gap for women of colour.

It affects the ability of women to save and pay off their debts. The study revealed that 29% of the women surveyed by TIAA struggle to pay their monthly bills.

A lot of women are not working due to the pandemic. According to U.S. Bureau of Labor Statistics, around 2 million women have quit the workforce since 2020. Organization for Economic Co-operation and Development says that if women quit working they can lose 30% of their income.

Eweka stated, “Those are earnings that won’t probably be recovered.”

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Marguerita Cheng is a financial planner who also serves as CEO at Blue Ocean Global Wealth, Gaithersburg, Maryland.

Kelly DiGonzini CFP director of financial planning, Beacon Pointe independent advisory firm, Newport Beach, California, stated that one way to do this is to keep making contributions to your 401k or individual retirement account.

Over time, every amount of money you can invest will continue to grow.

Eweka says that employers often offer matching if employees have a plan. Eweka said that many employers offer financial planning benefits which will help you determine if your retirement goals are achievable.

Cheng is part of the Advisory Board of Cheng. the CNBC Advisor Council.

Shweta Lawande is a CFP analyst and CFP at Francis Financial in New York. She advises women to spend wisely and live within their means. Francis Financial serves both couples and individuals going through divorce.

Lawande explained that the main thing Lawande and her team want to communicate to clients is “what they can control”. Lawande said that although they are unable to control job markets or lockdowns they can manage their budgets.

Lawande stated that people with existing portfolios can review their investment allocations and ensure that they have a variety of stocks, bonds, real property, cash, and other assets. He also said it lowers the risk.  

A financial advisor can help women plan their retirement.

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