While a sizable portion of consumers are always looking for ways to improve their personal finance plans, there are still some who are not doing as well as they probably could be. This may be compared in a number of different ways, but gender could be one of the prevailing issues.
More than 30 percent of women do not contribute enough money for their retirement plan to get the match from their employer, according to a report from Aon Hewitt. Only 25 percent of men noted struggling with the same thing. Women also typically save less than 7 percent of their overall income, while men save more than 7.5 percent.
“Women face a number of challenges when it comes to saving for retirement including gaps in their career when they are not actively contributing to their retirement and longer life expectancies, said Patti Balthazor Bjork, director of Retirement Research at Aon Hewitt. “However, there are factors that women can control to boost their retirement savings, such as how much they contribute, how they invest over time and whether they keep assets within the retirement system.”
For the total balance of retirement plans, women also lagged behind, the report explained. The gender was slightly higher than $59,000, while men averaged $100,000. Saving a lower level of money for retirement can open women up to other issues, such as defaulting on loans from savings plans.
Younger people experience some retirement issues
While getting a financial strategy that is strong and helps prepare for the future is an important aspect of life, there is some evidence that many younger individuals are not taking advantage of this. Avoiding a strong retirement strategy can be dangerous for those trying to improve their financial outlook.
More than two-thirds of those people in the Millennial generation noted they have not yet begun to save for retirement, or even create a plan for the future, according to a report from MainStreet.com and GfK. Despite this, close to 50 percent are planning on being dependent on Social Security, despite the issues that may pose regarding viability.
More than 60 percent of the group noted they plan to retire by the time they turn 65 years old, the report added. Despite this, close to 60 percent noted that using a retirement plan involving an employer is a smart option.