July 8, 2014
Millennials and Money: Women Trail Men
Millennial women may have higher expectations about their financial prospects than their baby-boomer mothers.
But Millennial women, just like their mothers, are earning less than their male counterparts and saving less for retirement.
The vast majority of single and married men and women, ages 22 through 33, said they recognize the need to save, whether as a defense against economic uncertainty or in response to the onus on each U.S. worker to prepare for his or her own retirement.
A major reason cited for not saving is “not having enough money to save right now.” This is especially germane for women: for example, the median annual income for Millennial women is $45,000, while their male counterparts earn $61,000.
Women, on the other hand, would make wiser choices about what they’d do with a $5,000 windfall: they’d be less likely than men to spend the windfall and more likely to save it or use it to pay down debt.
Harris Poll conducted the nationally representative online survey of 1,600 Millennial households for Wells Fargo. In addition to single Millennials, married and single mothers were also surveyed, and child-rearing responsibilities likely reduced the incomes reported by women.
Nevertheless, Millennial women trail their male peers in five financial benchmarks shown below:
July 3, 2014
Financial Savvy Means More 401k Returns
Financial knowledge is critical to one’s retirement security, finds a new study showing that 401(k) plan participants who scored higher on a test of their financial knowledge earned an additional 1.3 percentage points of investment returns annually on their retirement accounts.
Over a 30-year working life, that higher rate of return would add 25 percent to total savings at retirement.
Readers can take the quiz by clicking here; answers appear at the end of this blog post. …Learn More
July 1, 2014
Best States for Growing Old
Minnesota, Washington, Oregon, Colorado, Alaska, Hawaii, Vermont, Wisconsin, California and Maine – these states may be the best places to grow old.
They came out on top in AARP’s new State Scorecard based on their access, cost and the quality of their care services for aging adults and on their supports for the most common form of caregiver – family members.
To see your state’s overall ranking, run your cursor over the map below. To see how your state ranks on other measures, click here.
Enid Kassner, an AARP vice president who helped developed the rankings, said the Scorecard is useful to the leading edge of the baby boom generation, who will start turning 80 in 12 years. For example, if having a say in selecting the individual professional who will provide care, such as bathing, dressing, or meals, is the top priority, California is the best place to be. …Learn More