Women Are Behind on Financial Goals Because of These 3 Reasons, New Study Shows
How far do women feel they’ve made progress with their financial goals?
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In a new survey by Laurel Road, just “25% of women said that they are not behind schedule on anything related to their personal financial security, compared to 34% last year.”
The survey revealed three main reasons why women feel behind on their financial goals.
Retirement Savings
First, there’s the issue of retirement savings. In the survey, 38% of women “identified retirement savings as a key area where they are behind.”
Moreover, 33% of BIPOC women said that retirement savings was one of their biggest concerns.
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This finding isn’t surprising — as Morgan Stanley noted, men can contribute more to their retirement accounts because of the disparity in income levels between women and men. Other factors that leave women with less money for retirement, Morgan Stanley pointed out, include women having more career interruptions and longer life expectancies.
To reach their retirement saving goals, women can take various steps, including opting for an available employer 401(k) match if they haven’t already done so, consolidating different IRA accounts they might have and seeking advice from a financial planner.
Credit Card Debt Repayment
Then there’s credit card debt repayment, which 30% of women in the survey indicated as a reason for considering themselves behind on their financial goals. Additionally, 32% of BIPOC women named credit card debt repayment as a concern.
If someone doesn’t have control of their credit card, that debt feels increasingly insurmountable. Women dealing with credit card debt can explore different ways to pay it off. For instance, they can consider following money expert Suze Orman’s advice, including decreasing spending and requesting a lower interest rate.
Student Loan Repayment
Laurel Road pointed to the end of student loan forbearance as a reason behind women’s increased worries over repayment. In the survey, 14% of women voiced worries about student loan repayment. By contrast, in 2023, 9% had that worry.
Student loan debt is a serious issue in the U.S. According to Education Data Initiative research, in the fourth quarter of 2023, the total student loan debt in the nation was $1.727 trillion. However, with the Biden administration’s SAVE Plan for student loans, women can tackle their repayments in a more manageable way, and, depending on their exact circumstances, they could even get their loans forgiven down the line.
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This article originally appeared on GOBankingRates.com: Women Are Behind on Financial Goals Because of These 3 Reasons, New Study Shows
