OVERCOMING THE RETIREMENT GAP
The average 401(k) balance for women in 2022 was nearly 44% less than their male counterparts. The main factors contributing to this are the wage gap and the need for more savings.
It is important to arm women with the skills needed to feel comfortable making the correct decisions when it comes to financial decisions. Combat the savings gap with these strategies:
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If your employer offers you a match in your 401(k) or similar retirement plan, take it! Make sure you’re not leaving any money on the table. The best way to ensure you’re getting the full match is to spread out your retirement plan contributions evenly throughout the year.
Some retirement plans have rules about matching on a per-paycheck basis, and you don’t want to miss out on the free money.
Tip: Gradually increasing your contribution rate during annual raises or through automatic features like auto-increase are great ways to increase your savings while having little impact on your paychecks.
A budget not only provides a plan for staying on track — but can reduce short and long-term stress by providing an outline to improve overall financial wellbeing.
Tip: Microsoft Excel & Google Sheets both offer free budget templates that you can customize for your needs- there are also several free apps, like Mint.
If you have credit card debt or student loans and you’re wondering whether to save or pay down the balance, consider the interest rate in your decision. If you’re paying more than 6% interest on debt, try to prioritize paying that down sooner in order to reduce the amount of interest you have to pay overtime.
On the other hand, if it’s low or no interest, it might be better to balance paying down the debt with saving for the future.
Tip: If you aren't using your tax refund to pay off loans, start an emergency fund using an interest-bearing, low-risk savings account!
With these helpful tips, you can work toward building better savings in retirement for you and your family. You can buck the trend plaguing many by using the resources you have to increase your financial literacy, which can have a significant impact.
Savings don’t just help you in the future. They can help give you peace of mind today that you are prepared and will be financially prepared for anything that may come up in the future.
Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.
