A recent poll shows that most Americans have been shaken by the recession and are no longer optimistic about the economy improving any time soon. In addition, researchers found that many people, especially women are fearful about their personal financial future. In many cases, women admitted to saving less for retirement because they are “just getting by” or are desperately trying to pay off current debts, including school loans.
The poll’s results have many financial experts concerned that individuals are not building a large enough retirement nest egg. This is especially true for the female respondents who stand to suffer more in the future given that they tend to live longer than men. According to financial experts, women’s long-term financial needs are different from men’s because they earn 25% less and outlive men by five to seven years. In addition, most women also accumulate less in their 401(k) s because they spend more than 11 years out of the workforce, compared to just 16 months for the average male.
In order to compensate for the factors playing against them, experts recommend women become more money savvy by reading books, attending seminars and learning how to invest cash wisely. For young women just starting out in the workforce, it’s a good idea to open a retirement account right away and max out your contributions to a 401(k) employer-sponsored plan.
Once you start making a decent income you can start a solid investment plan. From there, consider diversifying your investments so that you have a reasonable mix of stocks, bonds, cash and maybe some real estate. Once you have a decent portfolio set-up, it’s a good idea to review it annually. Look out for fees that may be sapping your accounts. Finally, don’t fall into the trap of thinking your golden years are far off and that you have plenty of time to save money in the future. Putting off the inevitable may spell disaster for your retirement.