Research Reflects Men Contribute More to Pension Savings than Women

More than 90% of financial counselors claim that men make more pension contributions than women do. According to nearly 70% of respondents in an Independent Trustee Company (ITC) survey, men save “way more” than women do.

The fact that women frequently take time out of the employment to start and raise their families is one of the main causes of their pension savings gaps. This, according to over 60% of financial experts surveyed, is the primary cause of women’s lower pensions. However, 40% of respondents said that the gender pay gap was a major factor in the difference in savings.

According to Glenn Gaughran, Head of Business Development at ITC, “these job breaks result in lower earnings and fewer opportunities to contribute to pension plans.” There are many different factors at play here. For some, it’s important to stay at home with their children, especially during the early years. For many others, however, the lack of accessible and affordable childcare leaves women with little choice but to leave full-time jobs or take part-time jobs in order to care for their families.

“All of this culminates in a situation whereby women lose out on job promotions, salary rises, and pension contributions are stalled or stopped altogether,” he stated.

When it comes to financial planning, over 30% of respondents said they believe men are taking a more proactive role, while 14% perceive men as being more inclined towards long-term planning.

In order to increase their financial stability and make plans for the future, women can take the following doable financial actions, as suggested by Mr. Gaughran:
Set Specific Financial Goals: Establish clear financial objectives, both short- and long-term, such as setting up an emergency fund, saving for retirement, or paying for schooling. Making an effective financial plan requires setting specific, attainable goals.
Keep an eye on your cash flow: To determine where your money is going, keep a record of your earnings and outlays. Having a clear understanding of your cash flow will enable you to make wise choices regarding your investments, savings, and spending.
Construct an Emergency Fund: Building Safety provision to accumulate three months’ worth of pay in an account for savings. Establishing a rainy-day fund offers protection against times of lower income or joblessness.

Prioritize Debt Repayment: Make it a priority to pay off high-interest obligations as soon as you can, such as remaining credit card bills. Debts with high interest rates have the potential to mount up quickly and cause a big financial hardship. To combine several bills into one easier-to-manage payment, think about options like debt consolidation.
Invest in Your Retirement: It’s never too late to enroll in a Personal Retirement Savings Account (PRSA) or employment retirement plan if you haven’t already. If at all possible, look into ways to increase your retirement savings, such as by making Additional Voluntary Contributions (AVCs). Examine any idle retirement accounts from prior jobs and make any necessary adjustments to your contributions.
Seek Advice from a Financial Professional:Speak with a financial counselor. A competent advisor can help create a thorough financial strategy and provide customized guidance.