Women’s retirement finances: a worrying trend
Welcome to our #251 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we spotlight Fidelity International’s study on women and money which reveals women’s concern about having enough for retirement.
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And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Women’s retirement finances: a worrying trend
A study by Fidelity International reveals women’s concerns about having enough money in retirement.
The latest Women and Money study by Fidelity International reveals a concerning outlook for women's financial security in retirement, as reported by the Financial Times.
Over half of UK women anticipate running out of money during their retirement years, yet find themselves unable to increase pension contributions due to the ongoing cost of living crisis.
Here are the key findings:
52% of women believe they won't have sufficient funds to maintain their income in retirement.
12% of working women have reduced their pension contributions in the past year, cutting back by an average of £173 per month.
The average pension pot for non-retired women is £42,600, nearly 45% less than the average for non-retired men (£76,700).
Factors contributing to the gender pension gap
Essential expenses: 51% of women cite lack of funds after covering necessities like rent, bills, and childcare as a barrier to saving more for retirement.
Alternative savings goals: 22% are redirecting funds towards other objectives, such as purchasing a home.
Age-related disparities
The gender pension gap is particularly pronounced among younger adults:
The power of small contributions
Fidelity's Power of Small Amounts calculator demonstrates how even minor increases in pension contributions can significantly impact retirement savings:
A 45-year-old woman earning the average UK salary could increase her retirement pot by £17,000 at age 68 by contributing an extra 1% of her salary.
For a 25-year-old, a 1% increase could result in an additional £74,000 in retirement savings.
These findings underline the urgent need for better financial education and support systems to help women navigate retirement planning and work towards closing the gender pension gap.
News in Brief
Financial news
US 2 year yields plunge to 3.95% as the Fed's Jay Powell says ‘time has come’ to cut interest rates.
US consumer sentiment rises for first time in five months as slower inflation and prospects for Federal rate cuts helped lift expectations about personal finances.
The Euro jumps to highest since July 2023 following dovish Jay Powell remarks. The most important statement in his speech: “We do not seek or welcome further cooling in labor market conditions.”
UK housing market at its strongest since Truss mini-budget aftermath.
Nvidia stocks tumbled 7%+ in after-hours trading as the chip company failed to live up to investor hopes with its latest results, delivering an underwhelming forecast.
Nvidia's rise has turned the company into the driving influence over the S&P 500, of which it now accounts for 6%+. There is no precedent for a company rising to such a weight so quickly (via BBG).
Crypto: bitcoin, ethereum, DeFi
Bitcoin ETFs log monthly loss, logging a total net outflow of about $94m. Ethereum ETFs are ignored after outflow streak.
Bitcoin still underperforming stocks since early August deleveraging event: Coinbase.
Pump.fun surpasses $100m in revenue as Polymarket outshines NFTs in August.
Yuga Labs CEO reveals The Workshop team focused on ApeChain dapps.
Bitcoin-loving independent candidate for U.S. president Robert F. Kennedy Jr. on Friday withdrew of the race and said he'd support crypto-loving Donald Trump.
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