If you’re feeling unsure or concerned about your retirement plan, you’re not alone. A recent survey of 1,586 women conducted by Teachers Insurance and Annuity Association of America (TIAA) in partnership with YouGov and economist and author Emily Oster found that only 26 percent of respondents feel confident about their retirement savings. Women, particularly mothers, often prioritize family expenses over their own financial security. TIAA, YouGov, and Oster are working together to assist women and mothers in achieving a more secure retirement.
The data revealed by Oster, TIAA, and YouGov was surprising, with almost half of women admitting to having no retirement savings and 27 percent feeling dissatisfied with their savings. Education level was a significant factor in determining retirement savings, with women holding postgraduate degrees having a higher percentage of savings compared to those with only a high school diploma. Despite age, race, and parental status having less of an impact on savings, it was clear that many women were not adequately prepared for retirement.
The gender savings gap was also highlighted in the data, showing that women tend to have less retirement savings than men. Short-term thinking and financial constraints were cited as contributing factors, with many women needing to dip into savings or retirement funds during maternity leave. Childcare costs often influence decisions regarding work and savings, leading to missed opportunities for long-term retirement savings.
Experts like Melody Evans from TIAA emphasize the importance of looking at the bigger financial picture, planning for retirement, and seeking financial advice to make informed decisions. It’s crucial for women to have open conversations about expenses, budgeting, and retirement planning with their partners or financial planners.
While there is no one-size-fits-all answer to how much you should save for retirement, tools like TIAA’s retirement calculator can help you assess your current savings and plan for your future financial security. It’s essential to take proactive steps to secure your financial well-being in retirement. When it comes to saving for retirement, it’s important to know how much you are putting away. If you’re unsure, you can calculate your savings rate by dividing the amount saved each year by your annual salary.
In a recent survey, 49% of women who didn’t have any savings or were unsatisfied with their savings cited lack of income after paying bills and rent as a barrier to saving for retirement. However, even small amounts saved consistently over time can add up significantly.
For example, saving just $5 per month from age 30 to 65 could result in $10,000 in retirement savings. Increasing that to $100 per month could grow your savings to $160,000. Finding a balance that works for you is key.
When it comes to retirement accounts, financial experts recommend having your own individual account rather than a joint one with your partner. This allows you to choose your beneficiaries and investment preferences, promoting financial independence.
If your employer offers a retirement plan with matching contributions, take advantage of it. If not, anyone over 18 with an income can open a traditional IRA. Even small contributions can make a difference over time.
If you haven’t started saving for retirement yet, don’t panic. It’s never too late to start. Educating yourself about available options and being transparent about financial matters can lead to better decision-making and financial wellness in the future.
Overall, retirement planning is a crucial aspect of financial health, and discussing it openly can help empower women and close the gender wage gap. Remember, knowledge is power when it comes to securing your financial future.