Pentrust: NEWSLETTER - AUGUST 2022


 The Gender Gap and Retirement – Part 2

 Research shows that women are more likely to keep extra money (meaning anything outside of retirement or an emergency fund) in cash instead of investing. Not only is cash missing out on potential growth, but it isn't even keeping up with inflation.

Additionally, the investing gap compounds the pay gap: Women make less, then many are not investing much of what they have—leading to a lower overall net worth.

 What to consider:

There are options for every type of investor: personal retirement accounts, hands-off accounts, where an investment manager chooses and manages your investments for you, or hands-on accounts, where you choose and manage your own investments. Many women worry that investing involves too much risk, but there is a broad range of options for every comfort level and timeline.

 More than 75% of caregivers are women, first for children, then later for ailing parents or a partner.2 This means the associated costs (many of them hidden) are also primarily shouldered by women: When someone leaves the workforce to take care of a loved one, it can lead to lost salary and wages as well as reduced retirement savings (and potential growth), Social Security, health care savings, raises and bonuses, and more.

 What to consider:

If you leave the workforce, try to keep saving for retirement. If you aren't eligible for a retirement account, consider investing in a nonretirement account.


SOURCE: Fidelity Viewpoints/Internet