Single women are unlikely to close the ‘retirement gap’ even with a lifetime of employer contributions, meaning many will not enjoy a comfortable retirement.
Women still struggle to fund their retirement.
Millennials especially are no longer aspiring to own their own home and the unwritten and unstated rule is that someone else will eventually take care of increasing life spans.
Many young females will not achieve a comfortable retirement even after a lifetime of employer support.
Whatever the reason a single woman’s retirement income is expected to be 20 per cent less than a single males with an average income of $50,000.
The most effective way to bridge the gap is to start saving early and often.
Fees need to be lowered and investment made more efficient.
Women need to consolidate all their accounts and they should measure their employer’s fund against an index benchmark.
Women need to ensure they are invested in the right options.
Investing in growth assets before and during retirement is important.
Funds need to be be concerned more with enhancing retirement returns, and less about sequencing risk – the latter can be handled by shifting money into cash at the right time and not by changing the overall asset allocation of the fund.
Women will want overseas trips healthcare accommodation and lifestyle. None of this will be provided by someone else and no one will wave a magic wand in 20 years to make it happen. Women should not be relying on a mysterious solution .. The answer is simple to save and invest efficiently particularly if you are renting.
John Kimber