It may seem counterintuitive that you're presented with retirement savings options the moment you get your first job. You just started working and you're asked to consider your life when you've stopped working for good. That's reality folks, because unless you have a family fortune to count on or make serious dinero that lets you worry less, it can take your working lifetime to save enough to live during retirement.
A new study released by human resources consulting firm Hewitt Associates determined that women aren't saving enough to support them through their longer lives. Women tend to start saving later than men and are in retirement an average of three more years. Learn more about the study and how to make up for lost time when you read more.
The study surveyed projected retirement levels of about 2 million workers and used actual employee balances. Here are the key conclusions from their findings.
- 25 percent of women didn't contribute enough to take advantage of the company match.
- Not including an employer's matching contribution, a woman who earns $57,000 a year can save an extra $81,000 by the time she retires if she boosts her contribution from 2 percent to 4 percent (an extra $95 a month).
- 90 percent of women were unsure about managing their finances.
- Men and women are on track to save about 67 percent of what they'll actually need for retirement, and Hewitt estimates workers will need to replace 126 percent of their salary after retirement.