As a Woman Saving for Retirement, What Are Some Factors I Should Be Considering?

Planning Cent$

Question:

As a woman saving for retirement, what are some factors I should be considering?

Answer:

A great deal has been written on women as savers and consumers of financial products in the last five years. The final analysis truly swings from one end of the spectrum to another: women are better savers than men, women don’t save enough (or at all), women are better investors than men, and one study claimed that three out of four women do not know how their savings are invested. Without a doubt, a consistent conclusion is missing. Here are a few factors that we do know:

While a woman as significant wage earner has changed for the positive, as a rule we still have lower retirement savings. Begin thinking about ways to change this outcome. For instance, a self-imposed automatic deferral increase every January 1st or when a pay raise is given. If you have not started saving, start now!

Women are generally far more risk-averse. Take this seemingly innate characteristic and use it in conjunction with the available education tools (call us for examples) to develop an investment strategy which mirrors the different points in your life.

Woman as caregiver – Women as caregivers are far more likely to work part-time, take years off to rear their children and take time off to care for aging parents. Financially, this all results in lower income, less savings and reduced access to benefits. This is a likely and yet another key factor to weigh in determining your retirement savings plan. Again, through available retirement savings educational tools you can incorporate this into your planning.

Women live longer – No surprise here. According to the Society of Actuaries Annuity 2000 Mortality Tables, “once a woman reaches age 65, she has a 49% chance of living to age 89 and a 23% chance of living to 95”. Acknowledging this likelihood, we need to determine strategies to save enough and make certain that we do not outlive those savings.

“Despite the unique challenges that women face, there are important opportunities within reach that can help them improve their retirement outlook,” said Catherine Collinson, president of the Transamerica Center for Retirement Studies. Call us to learn more about these opportunities.

Fun Fact:

The First Women’s Rights Convention was held in Seneca Falls, New York in 1848. The Declaration of Sentiments was signed by 68 women and 32 men. Mirroring the Declaration of Independence, it stated that all men and women were created equal. (Source:

If you have a question, please send it to or give us a call at (630) 887-8400. We will answer your question directly and privately. If we believe it would help other 401(k) Plan participants, you might find it in a future Planning Cent$ bulletin (anonymously, of course).

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