Men are outpacing women in pension contributions, according to 93% of financial advisors surveyed nationwide. Among them, over two-thirds (67pc) confirm that men are saving “way more” than their female counterparts.
The findings from a recent survey of over 160 pension advisors, undertaken by leading pension trustees, Independent Trustee Company (ITC), once again support the long-standing contention that women are vastly underprovided for when it comes to retirement planning. The most common reason cited for just why women lag so significantly behind, is the fact that women often take extended periods of time out from the workforce to start and raise their families – 6 in 10 (57pc) financial advisors said this was the primary driver of the pension saving gender gap.
Headline survey findings included, the gender pay gap is highlighted by 4 in 10 (40pc) as a significant contributor to the disparity in savings. In terms of financial planning, one-third (32pc) believe men are taking a more proactive role, while 14pc perceive men as more inclined towards long-term planning. While 16pc claim that men exhibit greater interest in pensions compared to women.
PRACTICAL STEPS
Glenn Gaughran, Head of Business Development at ITC, outlined several practical financial steps that women can take to strengthen their financial security and plan for their future:
– Establish Clear Financial Targets: Define specific short-term and long-term financial goals. Setting clear and achievable goals is essential for creating a successful financial strategy.
– Monitor Your Cash Flow: Keep track of your income and expenditures to see where your money is going, helping you to make informed decisions about spending, saving and investing.
– Build a Safety Net: Work towards saving three months’ worth of salary in a savings account. Creating a rainy-day fund provides a buffer against periods of reduced income or unemployment.
– Prioritise Debt Repayment: Concentrate on clearing high-interest debts, such as outstanding credit card balances, as quickly as possible. High-interest debts can quickly accumulate and become a significant financial burden. Consider options such as debt consolidation to streamline multiple debts into a single, more manageable payment.
– Invest in Your Retirement: If you’re not already enrolled in a workplace retirement scheme or Personal Retirement Savings Account (PRSA), join now, it’s never too late. Explore opportunities to bolster your retirement savings such as through Additional Voluntary Contributions (AVCs) if feasible. Review any dormant retirement accounts from previous employments and adjust your contributions as needed.
– Seek Professional Financial Guidance: Consult with a financial advisor. A knowledgeable advisor can offer tailored advice and assist in developing a comprehensive financial plan.
 confirm that men are saving “way more” than their female counterparts. ){kind=link}