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Saving for Retirement – What’s a Woman to Do?
Posted By Carole Fleck On August 14, 2013 @ 12:03 pm In Work Matters | Comments Disabled
If we women don’t boost our retirement savings  now, we may not be able to meet our daily financial needs when we leave the workplace for good, a new report says.
Not only do we contribute less than men to our 401(k) accounts  – 6.9 percent of pay, on average, compared with 7.6 percent for men – but we’re also more likely to default on loans  we’ve taken from these plans. Fully 71 percent of women who left their jobs with outstanding 401(k) loans  defaulted on them, compared with 64 percent of men. So not only did their balance decline, but they were also on the hook for steep taxes and penalties.
And then there’s the fact that the average woman earns only 77 cents for every dollar a man earns.
Add everything up and it’s no wonder that women  across all salary levels have an average plan balance almost half that of men – $59,300 versus $100,000, according to the report by Aon Hewitt, which analyzed some 140 defined contribution plans representing 3.5 million employees.
“Women face a number of challenges when it comes to saving for retirement , including gaps in their career when they are not actively contributing to their retirement, and longer life expectancies,” says Aon Hewitt’s Patti Balthazor Björk.
The report says that while working women need to accumulate 11.2 times their final pay to meet their needs in retirement , they’re only on track to accumulate 8.6 times that.
What’s a woman to do? The report recommends:
Photo: Seattle Municipal Archives/flickr 
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Article printed from AARP: http://blog.aarp.org
URL to article: http://blog.aarp.org/2013/08/14/saving-for-retirement-whats-a-woman-to-do/
URLs in this post:
 Image: http://blog.aarp.org/wp-content/uploads/2013/08/3739366785_5c7df39ac4.jpg
 retirement savings: http://blog.aarp.org/2013/05/13/how-much-income-will-your-401k-provide/?intcmp=AE-BLIL-BL
 401(k) accounts: http://www.aarp.org/work/retirement-planning/info-10-2011/your-401k-and-your-retirement.html
 loans: http://www.aarp.org/money/investing/info-07-2009/pond_401k_loans.html
 outstanding 401(k) loans: http://www.aarp.org/work/work-life/info-06-2009/ask_the_experts_when_a_layoff_catches_you_with_a_401_k_loan.html
 women: http://www.aarp.org/work/retirement-planning/info-10-2012/10-steps-to-plan-for-retirement.html
 saving for retirement: http://www.aarp.org/money/investing/info-08-2013/take-charge-of-your-money-at-60.html?intcmp=AE-BLIL-DOTORG
 Are you Saving Enough? Find Out With Our Retirement Calculator: http://www.aarp.org/work/retirement-planning/retirement_calculator.html?intcmp=AE-BLIL-DOTORG
 needs in retirement: http://www.aarp.org/work/retirement-planning/info-01-2013/6-ways-women-can-prepare-for-retirement.html
 401(k): http://www.aarp.org/money/investing/info-12-2010/ask_the_experts_maxing_out_your_401k.html
 Increase your contribution amount: http://blog.aarp.org/2013/02/18/seven-easy-ways-to-maximize-your-401k/?intcmp=AE-BLIL-BL
 Seattle Municipal Archives/flickr: http://www.flickr.com/photos/seattlemunicipalarchives/3739366785/sizes/o/in/photolist-6Gret8-9h4w73-dJUk8V-QUjr-bDuf3M-4Z6QaX-4Z6D9T-4Zb4pS-4Zb3W5-9qEVpc-9qHWuy-9qEVED-9qHWhQ-9qHW2G-9qEVTc-3D1fbJ-ab7FNz-abaxi7-dQwbZp-yPdUQ-6beoCQ-apZEDm-2yXsEt-da7ZXQ-bB68b2-9MnV3M-e2UktH-6Tf6dh-achUNi-eabPQG-7DcHgk-b8sUyP-bqyqSG-fgvQ71-tdBsu-7VkmTS-93xQPN-8mprWH-rptLR-6ef33e-abHJH-6geg6T-9E2vdY-8erH38-8erktT-fTyiG-61vgc3-MikNc-9iEN1F-xdeMD-38e4Xz/
 401(k) Fees: Workers Aren’t Doing Much to Lower Them: http://blog.aarp.org/2013/08/05/401k-fees-workers-arent-doing-much-to-avoid-them/?intcmp=AE-ENDART1-BL-REL
 Average 401(k) Balances for 55-Plus: $255,000: http://blog.aarp.org/2013/06/17/average-401k-balances-for-55-plus-reach-255000-retirement-savings/?intcmp=AE-ENDART2-BL-BOS
 Join AARP: https://appsec.aarp.org/MSS/join/application?intcmp=AE-ENDART3-BL-MEM
 AARP home page: http://www.aarp.org/?intcmp=AE-ENDART3-BL-HP
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