By Carmen Reinicke -
CNBC
Women are more concerned than men when it comes to saving enough for retirement.
And the coronavirus pandemic hasn't helped.
60% of women declare themselves worried about not being able to retire with an income that allows them to be safe and calm, according to a survey carried out in February 2021 by the National Institute for Retirement Security.
This figure compares with 51% of men (which is still a disappointing figure) who said the same.
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Women are also more likely to say that an employer-sponsored plan is not enough to save for retirement, according to the survey.
They also said that the amount needed to save for retirement has only increased, citing things like rising long-term care costs, stagnant wages, lack of pensions and rising debt.
"Women's views on retirement are a little more pessimistic about their situation and about the ability of others to save for when that time comes," said Dan Doonan, executive director of the National Institute for Retirement Security.
"They also seem
more clear that retirement is getting more difficult as time goes by."
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The impact of COVID-19
The difference between what men and women have saved for retirement has long been documented.
In 2016, the median household income for women 65 and older was $ 47,244, including income from retirement, property and Social Security, according to a May 2020 document from the National Institute of Security in the United States. Retirement.
For men 65 and older, the figure was $ 57,144.
Almost $ 10,000 difference.
There are many things that contribute to the gender gap in retirement savings.
Women, for example, continue to earn less than men and stop working longer to take care of their children or family.
Women also tend to live longer than men, which means they need more savings in their later years.
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“Part of this is outside of the retirement infrastructure.
The pay gap continues to exist between men and women, and it haunts women in retirement, ”said Doonan.
It is very likely that the coronavirus pandemic has worsened the gender gap between retirement savings, as
women have been more likely to lose their jobs because they are more part of the worst affected industries
or have left their jobs to take care of children or other family members.
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Women have returned to work much more slowly than men after the pandemic.
In August, women added 28,000 jobs, while 207,000 men found a new job
, according to the Labor Department.
About 39% of unemployed women have been without work for six months or more, and more than 25% of unemployed women have been without work for more than a year.
All of this has a negative impact on the ability to save for retirement.
What can be done to start over?
Without a doubt, it is not a problem if you have had to stop or save less for retirement during the pandemic because you have lost your job, part of your income or have suffered any circumstance derived from the health crisis.
You can get back on track and start saving for retirement again.
"In the short term, nothing happens if you have to adjust,"
says Marguerita Cheng, a certified financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.
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One way to do this is to continue to make as many contributions as you can to your 401 (k), your employer-sponsored retirement plan that allows you to save part of your wages, before taxes, to save for retirement, or to a savings account. individual retirement if you've lost your job and access to company-sponsored plans, said Kelly DiGonzini, director of financial planning at Beacon Pointe, an independent counseling firm in Newport Beach, California.
Any amount you can invest will grow over time with the help of the stock market.
"The market has skyrocketed," DiGonzini recalls.
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If you can't save consistently, putting aside some windfall earnings, like a stimulus check or tax refund, is a good way to contribute to retirement, said Cheng, who is a member of CNBC's Board of Advisors. sister network of Noticias Telemundo.
Women should also focus on spending and living within their means, said Shweta Lawande, an analyst at Francis Financial, a New York-based firm dedicated to serving women, couples and those experiencing divorce.
"What we try to share with our clients is that they focus on what they can control," Lawande explained.
While they can't handle closings or the job market, they can make sure their budgets are tight.
And those with an existing portfolio can take time to review their asset allocations to make sure they are invested in a diverse group of stocks, bonds, real estate, cash and more, Lawande noted, adding that this reduces risk.
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"Even in a year like 2020, we saw the benefits of our clients that remained invested in the market and diversified," he recalled.
Seeing a financial advisor, if possible, can also help women make sure they are on track to retire when they would like and formulate a strategy to correct course if they are not.
