FINANCIAL
IS SAVING FOR RETIREMENT DIFFERENT FOR WOMEN? BY SARAH SUYDAM
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It’s true that saving for retirement
is indeed different for women. But why? And in what ways can women adjust knowing these factors? To learn more, we connected with Abby Lininger, Financial Advisor with Drake Financial Group, and Laura Corbiani, CFP®, Wealth Advisor with Midwest Capital Advisors.
THE DIFFERENCE Retirement for women can be inf luenced by a number of factors. According to Corbiani, women tend to be less confident in financial matters because of things like the fear of embarrassment when asking a question, being afraid of making mistakes or telling themselves they’re “ bad at math.” Corbiani also notes that women—who account for two-thirds of the minimum wage workforce in the U.S. typically make less money than men while also having a longer life expectancy. “Living longer means their money needs to last longer, and women likely need to save more and/or be more aggressive with their investments to cover the extended period of time,” Corbiani said. Lininger notes that among her clients, she sees many women who have alternative sources of income through independent consulting roles or small businesses, which often prevent them from having a traditional 401k or 403b for retirement savings. “[Some can end up feeling] overwhelmed, not knowing what their options are or where to turn for good advice,” Lininger said. “As a result, nothing gets invested and valuable years go by, putting us behind our male counterparts.”
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“Women make more financial decisions than they realize. If women can recognize the skills they already have and proactively address biases, this can help improve their financial skills.”