It’s often said that mothers naturally put others first, which, admirable as it is, becomes a problem in terms of their own financial future. A new study by the ING Retirement Research Institute shows that women, on average, are much less prepared for retirement than men. Not only do fewer women have formal investment plans in place, but those that do have a retirement plan have over $40,000 less than their male counterparts in those savings plans. One of the most concerning numbers is that only 25% of all women have a formal investment plan.
Despite the fact that the gender wage gap is becoming smaller overtime, many women fail to capitalize on the skills that they bring to the work force.
There is no question that women need to do more in terms of saving for their retirement. At ages 65 and older, the majority of women in today’s society are single, which means they need to have a plan for funding their retirement. Before we can start to search for a solution, it’s important to pinpoint the causes. What is holding women back?