Financial independence is critical for all individuals, but especially for women. On average, women live almost six years longer than men. This extended life expectancy requires women to acquire retirement resources strategically. 
 
A University of Southern California study found that only 16% of women ages 40 to 65 have ever received any financial education. Among African American, Native American and Asian American women, this figure falls to 8% to 10%. These statistics have real consequences. According to the Teachers Insurance and Annuity Association of America (TIAA), women with very low financial independence are five times more likely to have difficulty making ends meet and three times more likely to be debt-constrained.  
 
Among our staff, what started as a simple informational dialogue led by our chief financial officer, Lindsay Crum, quickly turned into a deep financial empowerment session. 
 
Here are some of the highlights on Lindsay’s professional opinions. 
 

Advice on savings 

  1. Pay yourself first. If you put money directly into a savings, retirement or investment account, you are less likely to spend it on non-essentials (i.e. daily Starbucks, the pair of shoes you don’t need, etc.) 
  2. It's important to start saving now. The earlier you start saving, the more compounded interest you’ll accrue and the more your investment balance will grow. 
  3. If your employer has a retirement plan and provides a match, contributing at least as much as the match is important.  Otherwise, you are missing out on free money if you don’t contribute. 

What is the importance of saving for retirement? 

  1. The earlier you start saving, the more your money will compound over time. 
  2. Social security is not guaranteed to be there when many of us retire. Even if it is still there, we will likely only receive a percentage of each dollar we are eligible for.  
  3. For example, my most recent social security statement shows that if I retire at normal retirement age, I will receive 80 cents for every dollar I’m eligible. This means that it’s likely that social security will only account for about 25-35% of my estimated annual expenses, so I need to plan and save for the remainder. 

How could an everyday person who doesn't know anything about a retirement plan set one up?   

  1. It’s easy! First, talk with your employer to see if they have a plan. If they do not, then ask if they use a payroll service, such as ADP or Paychex, as a lot of the time the payroll service can help you set up an account for free.  
  2. If this is not an available option, then you can set one up for free using any of the following websites (Charles Schwab, E*Trade, JP Morgan Wealth Management, Vanguard, Fidelity Investments, Robinhood, Merrill.) Many of these providers will also offer sign-up promotions, so look out for those as well. 

Empowered Exploration 

Gaining autonomy over finances creates a trickle-down effect in improving other areas of life such as family and community. Financial autonomy facilitates the freedom to make choices based on values, professional goals and dreams. 
 
Identify who you can talk to start saving, such as your HR department or a manager. How are you going to empower yourself to achieve your goals? By starting a conversation you are afraid to have, you can ultimately start discovering new ambitions.  
 
Saving for retirement is important for everyone but especially for women. If you are an employer, think about how you can empower and help women at your company to achieve financial independence. Sponsor a plan, share critical information and provide resources that ensure strong financial health.  
 
Today is a great day to start saving if you have not already started to do so. And if you already have, keep at it – your efforts will literally pay off in the future. 
 
Let’s talk more after our next Lunch & Learn! For more empowering content, check out our social media pages on Instagram, Facebook and LinkedIn.