The Retirement Savings Gap and How Women Can Get Ahead

The Retirement Savings Gap and How Women Can Get Ahead

Women know the importance of juggling obligations and priorities, including work, being a spouse, caring for kids or elders and spending time volunteering in our communities. We work hard to meet our goals and to achieve success, so why not add that same outlook for planning for retirement?

For the past few years, I’ve worked with a married couple in their late 20s on their 401(k) planning. Both the husband and wife invest the same dollar amount in their 401(k) plans. For this couple, saving for retirement is a healthy competition. She doesn’t want her husband’s account balance to be more than hers. If it is, she’ll increase her deferral to match or surpass his contribution. Here’s the interesting part: Right now in their careers, he’s making more money than she does, but it doesn’t stop her from maintaining the same level of savings.

Does this couple sound like you and your significant other? Do they sound like couples you know?

In reality, these clients are outliers when it comes to national retirement saving statistics. Many women do not save at the same rates as men, if they save at all. In fact, a 2018 Prudential study found that women have saved on average 43 percent less than men, and nearly half the female respondents said they have no retirement savings at all. More than a quarter of the women who responded (28 percent) said they plan to rely on their spouse’s money as a significant portion of their retirement income.

What you can do today to better prepare for retirement

Luckily, the steps to better understanding your 401(k) can be simple. Here are four actions you can take today to ensure you’re preparing for retirement:

  • Contribute as much as you can from your paycheck each month.
  • Take advantage of your employer’s full match — this is free money!
  • Spend time reviewing and understanding your statement each quarter.
  • Attend 401(k) education sessions when they’re offered by your employer to learn more about the Plan.

Additional steps business leaders and decision makers can take to help all employees

  • Be an advocate for securing and maintaining a strong retirement plan as part of your company’s benefits package.
  • Challenge your company to offer to hold 401(k) education sessions if they don’t already.
  • Invite other women to retirement planning and 401(k) education events.

What will you do today to get ahead in your retirement savings?

This article was originally featured in the Des Moines Business Record’s Lift IOWA newsletter on July 1, 2019.

Next steps:

  1. Learn about Bankers Trust’s Retirement Plan Services or contact me for details.
  2. Find more resources for retirement and investing.
  3. Subscribe to our email newsletter.
Jenny Carter

Jenny Carter

Vice President, Associate Managing Director, Retirement Plan Services (515) 245-5245 Email Jenny

Jenny Carter is vice president, associate managing director of Retirement Plan Services in the Wealth Management Division at Bankers Trust, where she provides oversight for qualified and nonqualified retirement plan administration. She joined the Bank in 2010 and served in Supervisor and Manager roles before being promoted to her current position in 2015. Jenny holds a Retirement Plan Associate (RPA) designation through Certified Employee Benefits Specialist (CEBS), and Fellow, Life Management Institute (FLMI). Her background includes: implementation, administration, and technical compliance of defined contribution plans. Prior to joining Bankers Trust, Jenny worked in positions at Diversified Investment Advisors, Marsh Advantage America and Principal Financial Group. She earned her Bachelor’s degree in business from William Penn University before starting in retirement services. Jenny is also a contributor of the Retirement and Investing category of the Education Center. Within her category, she shares her expertise on retirement planning. Simplifying complex topics for readers has provided her a unique outlook to what she does at the bank Jenny is active in the community as a volunteer at her children’s school and with Meals from the Heartland, and she previously served as a Girl Scouts troop leader. In her free time, she enjoys being involved in her kids’ activities and reading.

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