Yahoo Finance Nearly 9 Out of 10 Successful Women Feel ‘Financially Prepared’ for Retirement — 4 Ways to Get There
Although the nation’s gender pay gap is slowly closing, there’s still a long way to go to reach equality. During the 2023 fourth quarter, the median weekly earnings for women amounted to 83.8% of the median earnings for men, according to the U.S. Bureau of Labor Statistics. That represented a slight improvement from 82.9% the previous year.
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Pay inequities in the workplace translate into further inequities in retirement. The average Social Security check for women is more than $350 less per month than men. Women also have much less saved up in 401(k)s and other retirement plans, according to research from T. Rowe Price.
But there is some encouraging news. A new study from WSFS Co. subsidiary Bryn Mawr Trust found than nearly nine out of 10 women (87%) in comfortable income brackets are “financially well prepared” for retirement. This is mainly due to their growing involvement in financial planning and increased support from financial advisors.
The study surveyed 826 women across the country ages 40 and older with either a household income of at least $175,000 or investable assets of $1 million. The aim was to assess women’s roles and experiences in financial and retirement planning.
About one-quarter of the women surveyed said they have sole responsibility for financial decisions. The other 75% are increasingly sharing these responsibilities with others in areas such as retirement planning (56% of respondents), trust and legacy planning (50%), investment planning and management (50%) and tax planning (46%).
Younger women are more likely to have shared responsibility in retirement planning, according to the Bryn Mawr Trust study. Nearly seven in 10 (68%) of those ages 40 to 49 share responsibility in retirement planning vs. 51% of women ages 50 to 59, 52% of those 60 to 69 and 48% of those 70 to 79.
At the same time, older women are more likely to report having sole responsibility in retirement planning. The study found that 16% of women ages 40 to 49 have sole responsibility for retirement planning. That compares to 23% of women ages 50 to 59, 19% of those ages 60 to 69 and 23% of those ages 70 to 79.
“Women play a vital role in the economic picture of their families and communities, [and] taking a proactive and engaged approach to their financial planning is crucial,” Jamie P. Hopkins, Bryn Mawr Trust’s Senior Vice President, Director of Private Wealth Management, said in a press release.
To properly prepare for retirement, here are four important steps to take:
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Determine how much you will need to live comfortably in retirement and develop a plan to build savings accordingly.
Research various retirement savings options and create a balanced portfolio that reduces risk.
Take an active role in all aspects of retirement planning.
Consult a financial advisor to help out with budgeting, saving, investing and retirement planning.
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This article originally appeared on GOBankingRates.com: Nearly 9 Out of 10 Successful Women Feel ‘Financially Prepared’ for Retirement — 4 Ways to Get There
