fbpx
StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Why Women are Behind in Retirement Savings

November 20, 2019

The wage gap and less access to workplace plans have an impact.

2 min read

While retirement should be a time when you can stop working and just enjoy life, a new study shows that women may be less prepared financially for retirement than men.

A November, 2019 survey by The Transamerica Center for Retirement Studies found that men and women begin saving for retirement around the same time, and with roughly the same target sum in mind. But, women may fall behind men in retirement planning because they may make less than men on average. Women may also make more frequent career changes because they tend to be the primary caregivers in families.

The median estimated household retirement savings for women was only $23,000, compared to $76,000 for men, according to Transamerica, which conducts the survey annually with The Harris Poll. The survey collected responses from 5,100 workers and 1,800 employers.

What the Survey Found

The difference between men and women in their retirement savings begins early. The survey found that men start saving for retirement on average at age 26, while women begin a full year later, at age  27. And while both men and women hope to have a median $500,000 in retirement funds, 55% of women say they plan to retire after age 65, or not at all, compared to 53% of men.

Here are more details from the survey:

Women Who Have a Retirement Plan
0
Men Who Have a Retirement Plan
0
Source: TCRS

Women stay the course

The TCRS survey also found that 26% of women plan on using earnings from an investment account in retirement, compared to 42% of men, which could demonstrate that women are less likely than men to invest.

0%
Women who plan to draw investment earnings in retirement
0%
Men who plan to draw investment earnings in retirement

Source: TCRS

Yet, when women do invest, they are more likely than men to keep a level head during periods of market volatility, according to a Stash survey. 

The findings of the TCRS survey generally correlate with those of a November, 2018 survey from Stash, which found that more men tend to save for retirement than women. The survey found that slightly more than half of women who use Stash were saving for retirement, compared to two thirds of men.Don’t get left behind when it comes to retirement. You can invest and save for retirement with Stash.

Welcome to your new financial home.

Start today with as little as $5.

Get the App

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

By Claire Grant
Claire is a content writer for Stash.

This material has been distributed for informational and educational purposes only and is not intended as tax advice. Consult with your tax professional.
Disclosure: Stash does not monitor whether a customer is eligible for a particular type of IRA, or a tax deduction, or if a reduced contribution limit applies to a customer. These are based on a customer’s individual circumstances. You should consult with a tax advisor.

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
love and money pop culture politics Technology Retirement
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.