Women Have A Wider Retirement Gap
Your retirement gap is the difference between the amount of money you have and the amount you need to meet your retirement goals. If your retirement gap is too wide you will be forced to keep working during your retirement years or live on less money during your retirement. Why do women have a harder time then men do on closing this very important financial gap?
Lack of Knowledge
Knowledge is partially to blame because many women are not as educated about money issues as men are. For many baby boomer women their husbands handled all financial issues so they never learned the ins and outs of investments, retirement planning or money management.
Since many women have a working gap due to raising their children full-time they earn less then men therefore have less money to invest into their retirement accounts. This can create quite a wide retirement gap.
Women live longer then men therefore need more money than men do to retire.
Women generally prefer to do business with someone they first establish a relationship with. Since many women have not been making financial decisions they have not established any relationships with financial advisers, stock brokers or bankers. It takes time to develop these relationships and in the financial world time is money.
There are 2 ways that female clients have disconnects with their financial advisers. The jargon used in financial planning, retirement planning and money management can be confusing to someone who is just starting to get more involved in it. The financial industry is also a fast paced one. Women need a slower approach because they want to know reasons behind why they are doing something. The majority of financial planners are men who cannot relate to a slower approach to financial decisions.
Nothing is impossible; human nature allows us all to overcome anything that we put our minds to. The first step to shrinking your retirement gap is understanding why you may have a wider gap.