Finances and savings are favouritetopics among women of all walks of life. This includes full-time moms, housewives, working women and those planning to retire.
Many unique factors come into play when it comes to saving. A lot of factors work against women in terms of saving for retirement. These factors do have an impact on the number of assets that women accumulate over their lifetime.
Before we continue, women must understand the hurdles they may face when saving and address those issues.Why? Understanding these issues allowsyou to position yourself to achieve financial success in the long run.
Why Women Should Save More
In general, women save more andshould actually save more even after hitting a pokie online jackpot. Let’s look at the reasons why women should save more.
Women Earn Lower, Leading To Loss Compounding
Recent research shows that the gender pay gap has decreased. However, there is still a notable difference between the incomes of men and women. A full-time working woman earns about 81% of what her male counterpart earns. This is according to a recent study by the U.S. Bureau of Labour Statistics. Because of this, women save a lesser amount compared to men saving the same percentage of income. Inevitable, this diminishes the benefits of compounding. Furthermore, this leads to a much lower portfolio value over time.
Fewer Years inthe Workforce
Generally, women retire earlier than their male counterparts. Women, at some point, have to take care of the kids or ill relatives. These demanding factors force women to take time off. Ultimately, this means that women have fewer income earning years than men. Also, there’s less opportunity for wage growth. For this reason, women have lower overall savings.
Longer Lives and Greater Expenses in Retirement
Averagely, women live longer than men. Because of this, women need to fund a longer retirement. Yes, it is wonderful to live longer. However, it also means more expenses. Not only that, healthcare costs rise with age which really is not favourable.
How to Save More
The hurdles mentioned above are clear reason for women to save more.Yes, there are ways to beat these hurdles. Start now and you will enjoy your retirement. Or win a casino online jackpot and retire immediately? As a woman, you will need to consider increasing your savings. This compensates for all the above factors.
