According to an annual survey conducted by the Voth Nixon Group which polled 3500 clients, fewer women have begun preparing financially for retirement than men, thus creating a gender gap which can have long lasting effects.
The results show that 44% of women have begun setting money aside for retirement as opposed to 58% of men, and even within this group the amount of capital gathered does not represent even half of what their male counterparts have accumulated. The gender gap deepens even more in terms of savings behavior due to the fact that men would take greater risks in order to obtain higher profits.
“If we take into account the fact that women live on average longer than men do it’s very probable that they will find retirement longer than they have expected. Because of lower savings levels and taking fewer risks than their male peers women will find themselves facing significantly greater financial impediments” said Abigail Nixon, Managing Director of Voth Nixon Group.
The results also indicate that childcare is a major factor in terms of women successfully setting funds aside for retirement with only half of women ages 20 to 40 having a full time occupation compared to 76% of men in the same age group.
Women can however lower this gender gap by taking the example of female investors that are already productively preparing for retirement, known as ‘clever savers’, which on average set aside more capital than the regular saver, approximately $100.000 compared to $20.000.
‘Clever savers’ distinguish themselves from the general female population due to better financial behaviors which translate into better retirement readiness. Some of these positive behavioral factors include making retirement preparedness a priority, periodically reviewing their accounts and seeking professional advice.
“As various obligations come to light women can easily get sidetracked when it comes to accumulation and investments. They can however improve their situation by embracing positive financial habits, setting personal goals, gathering the necessary support needed to maintain these habits for longer amounts of time and learning from their female peers that have taken their financial life into their own hands” added Ms. Abigail Nixon.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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