Will retirement pay you a ‘happiness bonus’?-Anne Tergesen

The benefits of retiring can outweigh health and money worries

Retirement

Life gets better after retirement—despite the financial and physical challenges associated with that time of life. That’s the upbeat conclusion of a new poll from MassMutual Financial Group, which finds that although nearly half of Americans retire sooner than they planned, “retirees indicate high levels of emotional well-being, enjoyment and financial security.”

While these conclusions may run contrary to stereotypes of later life as a time of loneliness, depression and decline, they came as no surprise to me: As I chronicled in a Wall Street Journal article earlier this month, a growing body of scientific research that shows that, in many ways, life gets better as we get older.
Consistent with the research of Laura Carstensen, a psychology professor and director of Stanford University’s Center on Longevity, the MassMutual survey finds that positive emotions increase and negative emotions decrease over time among those in or near retirement. For example, while 72% of retirees say they are “extremely or quite happy,” only 61% of pre-retirees say the same. Moreover, almost 70% of retirees report being “extremely or quite relaxed,” versus 34% of pre-retirees. And fewer retirees than pre-retirees report feeling negative emotions, including stress, frustration and nervousness.
“Even though leading up to retirement, people have fear and anxiety, they seem to really enjoy their retirement years,” says Mass Mutual executive vice president Elaine Sarsynski. Moreover, she adds, people seem to get happier as time goes by.
Based on responses from 1,817 people within 15 years of retirement (before and after), the MassMutual survey was conducted in September. Respondents had to be at least 40 years old and have savings or investments of at least $50,000—a sum that’s consistent with the average 401(k) balance of baby boomers, according to Sarsynski.
Research by Carstensen, among others, indicates that emotional well-being improves until the 70s, when it levels off. Even centenarians “report overall high levels of well-being,” according to a 2014 study Carstensen co-wrote, which also cites extensive earlier research.
Overall, 60% of those responding to the MassMutual survey say they are very satisfied with their lifestyle in retirement—a finding most prevalent among those in their 70s, in good health, married or living with partner and with at least $500,000 in assets. Those with pensions are also happier.
According to the new poll, retirees say retirement has given them the opportunity to:

• Enjoy themselves (82%)

• Have more free time (80%)

• Have new experiences (69%)

• Enjoy friends (65%)

• Live a more relaxed lifestyle (66%)

• Feel fulfilled (64%)

• Reinvent themselves (25%)

Interestingly, the findings show that the pre-retirees’ worries about retirement tend to be overblown. For example, while 44% of pre-retirees worried about financial uncertainty, only 31% of retirees say that has been an issue. Among those still working, 31% say they worry about filling their time in retirement. But only 14% of retirees share that concern. Moreover, as retirement progresses, satisfaction rises. Among those who retired less than five years ago, 56% report being satisfied, versus 63% who retired more than five years ago.
Is all perfect in retirement? Not by any means. Aside from the 31% who report financial uncertainty, 13% say they are too busy and 10% have developed an illness or disability.

Sarsynski says the poll contains some lessons for pre-retirees. The first is to be prepared. Those who prepare financially and emotionally for retirement—by doing things like calculating the best time to collect Social Security, reconnecting with old friends and focusing on their relationship with their spouse—were happier, on average, than those who didn't take such steps, the poll found. Moreover, because 45% of respondents retired sooner than they had expected to, it’s important not to assume that you can retire on your own timetable.

Culled from Market watch

FUG Pension assets hit N30bn -Maduka Nweke

Determined to ensure international best practices and ser­vices for retirees that regis­tered with it, FUG Pension with N30 billion assets un­der management recently hosted its clients at its office at Sabo, Yaba, Lagos.
The PFA managing ac­counts of over 3,500 retirees, says its target is to provide a cutting-edge global standard service delivery that would draw every retiree to it.
According to the Managing Director of the Fund, Mr. Us­man Suleiman, the company had over the years acquired state-of-the-art technology that enhanced its service deliv­ery, with key structures like re­lationship management taking care of internal and external relations that further give its Retirement Savings Account (RSA) holders and retirees management confidence.
Speaking on the company’s prospects, Mr. Adeyinka So­gunle, Acting Chairman, said these structures had not only bolstered patronage, but also positioned the PFA for market competition.
Sogunle noted that total payment made to retirees from inception till date was N3 bil­lion, while the RSA holder unit price had cumulatively grown from N1 to N1.82 kobo.
He added that investment return has grown by 82 per cent, noting that the board and management of the company had ensured safety and good investment returns for its con­tributors and retirees.

Culled from the sun

Abercrombie Rejected A 17-Year-Old Girl For A Job, And Now The Supreme Court Will Hear Her Case- Erin Fuchs

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Aslan Media/Flickr Samantha Elauf The US Supreme Court will hear a dispute this term over Abercrombie & Fitch's decision not to hire a 17-year-old Muslim girl who wore a headscarf and would have violated the store's notorious "Look Policy."
The justices agreed to hear the case of Samantha Elauf back in October, and in recent days "friend of the court" briefs supporting her have flooded in from the ACLU, several states, and the American Jewish Committee, as well as gay rights and religious liberty groups.
Elauf, who's now a fashion blogger in her 20s, applied for a job as an Abercrombie "model" in Tulsa, Oklahoma back when she was 17, according to a legal document filed by the Equal Employment Opportunity Commission (EEOC), which brought the case on her behalf.

At Abercrombie, "models" are sales associates who are expected to model the store's style in compliance with its "Look Policy."

An Abercrombie assistant manager considered Elauf a "good candidate" but wasn't sure if her headscarf violated  Abercrombie's "Look Policy," according to the EEOC brief. That assistant manager consulted a manager, explaining that she thought Elauf  wore the scarf for religious reasons. The manager said the headscarf wasn't permitted, even if Elauf did wear it because she was a Muslim, according to the EEOC. 

Elauf didn't get the job, and the EEOC brought its case against the preppy retail giant.

The main issue here is whether Abercrombie violated a federal law that says companies can't refuse to hire people simply because of how they practice their religion — unless employers can show they're simply not able to accommodate those practices.
Abercrombie says it didn't violate that law because it never got "direct, explicit notice" from Elauf that her religious practice conflicted with Abercrombie's "Look Policy."
"[A]n applicant or employee cannot remain silent before the em ployer regarding the religious nature of his or her conflicting practice and need for an accommodation and still hope to prevail in a religion-accommodation case," Abercrombie noted in a brief it filed in the case.
Since this EEOC case was filed, Abercrombie has changed its look policy to allow headscarves. But it is still very invested in how its models look.
"Abercrombie expends a great deal of effort to ensure that its target customers receive a holistically brand-based, sensory experience," Abercrombie's brief stated. " To Abercrombie, a Model who violates the Look Policy by wearing inconsistent clothing 'inaccurately represents the brand, causes consumer confusion, fails to perform an essential function of the position, and ultimately damages the brand.”

While the Supreme Court has agreed to take on the case, it has not yet set a date for oral argument.

Earlier this month, longtime Abercrombie CEO Mike Jeffries stepped down after a rocky tenure that included allegations of discrimination and exclusion

Culled from Business insider in Yahoo Finance

3 Reasons Not to Raid Your Retirement Accounts-Eric McWhinnie

Source: Thinkstock

Life’s little surprises tend to be painfully expensive. No matter how carefully you plan and save for a rainy day, sometimes your financial umbrella just isn’t big enough. When faced with a money emergency, some people may ask family for help, use a home equity line of credit, or even pick up a second job. Many Americans also turn to their retirement accounts, which might lead to larger problems down the road.
Retirement piggy banks attract an alarming amount of early withdrawals. According to a report from HelloWallet released last year, more than one out of four households in the country turn to their 401(k) plans before retirement. In some cases, the entire account is drained in an effort to stem financial bleeding somewhere else. Early withdrawals for non-retirement reasons total approximately $60 billion per year, while 401(k) and 403(b) loans account for an additional $10 billion each year.
If at all possible, given your personal financial situation, it’s typically recommended that you avoid raiding your retirement accounts. Let’s take a look at three dangers that come with early withdrawals or 401(k) loans.

Source: Thinkstock

1. Uncle Sam

If you are unable to avoid withdrawals until age 59 1/2, you will face a 10 percent penalty and ordinary income taxes on your traditional Individual Retirement Accounts and 401(k) plans in most cases. With a Roth IRA, you can avoid penalties and taxes on withdrawals of your contributions, but you still face a 10 percent penalty and taxes on withdrawals of profits unless an exception applies.
You may be able to avoid the 10 percent penalty on retirement accounts if the distribution is due to death, disability, qualified higher education expenses, or medical expenses. First-time homebuyers may also qualify for a penalty-free distribution. However, the numbers reveal that most Americans who make early withdrawals are not receiving exceptions.
According to the Internal Revenue Service, Americans paid nearly $6 billion in retirement penalties during 2011. In fact, between 2007 and 2011, workers routinely lost more than $5 billion each year due to pulling money from tax-deferred retirement accounts. A 40-year old who drains $10,000 from a retirement account could easily cost themselves $3,500 in taxes and penalties, and even more in future retirement benefits.

2. Missing Out

In addition to paying Uncle Sam, you also encounter an opportunity cost from not being invested in the market. Even a short absence from the market can significantly impact your long-term returns and retirement plans.
When it comes to investing in the stock market everyday counts. As the chart above shows, $10,000 invested between December 31, 1993 and December 31, 2013, and would have grown to $58,332 if it was constantly invested in the S&P 500. If you missed the 10 best days during that period, the investment would have grown to only $29,111, almost half of the amount if you simply left the money untouched. By missing the 20 best days, your total is reduced to just $18,140.

Source: Thinkstock

3. Unintended consequences 

Borrowing from your 401(k) plan can be one of the best options if you have a short-term liquidity crunch. A 401(k) loan is typically quick, straight-forward, and probably comes with an interest rate more attractive than traditional consumer loans or credit cards. Furthermore, you don’t have to rely on a bank lender or pass a credit check. However, borrowing from your plan without considering the downside can harm your financial health.
According to a recent study by TIAA-CREF, 29 percent of Americans who participate in retirement plans say they have taken out a loan from their savings in the plans. Yet 44 percent regret the decision. Among those who took out a loan in the study, 43 percent have taken out two or more loans. Since these loans usually provide easy access to money, 401(k) borrowers run the risk of becoming dependent on them; 401(k) loans should not be used to supplement your overspending habits.
Borrowers should also be aware that while most 401(k) loans are paid back over several years, the typical loan is due in full within two or three months if you part ways from your employer for any reason. If you are unable to pay back the loan during this time period, your loan enters default and you are subject to taxes and possibly a 10 percent penalty if you are under retirement age.

Culled from wallstreetcheatsheet

Congress approves plan to allow pension cuts

In upcoming days, the Senate will vote on a spending bill that contains a proposal to allow multiemployer pension plans to cut pension benefits.

More than a million retired and current truck drivers, construction workers and other union workers could see their pension benefits cut now that Congress passed a proposal aimed at shoring up some of the nation's biggest pensions.

Tacked on as an amendment to the government's $1.1 trillion spending bill, the proposal was approved by the Senate late Saturday night.

While those sponsoring the pension proposal say it is "the only available option" to save failing multiemployer pension plans, other groups -- like the AARP and the Pension Rights Center -- are crying foul.
Multiemployer pension plans cover more than 10 million workers and retirees in the trucking, manufacturing and other industries. But many of these plans have struggled in the last decade as they grapple with an aging workforce and major investment losses from the recession. Plus, many larger employers have pulled out of the plans.
That has put a major strain on the Pension Benefit Guaranty Corporation, the government agency that insures pension plans, which last month said its reserves are dangerously low.
The Congressional proposal would allow plans that are projected to run out of money in the next 10 to 20 years to cut the benefits they pay to both current and future retirees. Benefits would not be cut for disabled pensioners or those 80 years and older, while cuts would be lessened for those between 75 and 80.


The PBGC projects that more than 10% of the roughly 1,400 multiemployer pension plans, which cover more than 1 million workers and retirees, currently meet this criteria.

 

10,000 works of art fund pension

Under current law, cutting the benefits of those who are already retired is off-limits. Instead, troubled multiemployer plans can take other actions, like reducing the benefits employees earn going forward and raising employee and employer contributions to the plan.
If the Congressional plan passes, cuts would require participant and government approval first, although the largest troubled plans could slash benefits even if retirees vote against it.
Retired truck driver Glenn Nicodemus, 64, receives his pension checks from the Central States Southeast and Southwest Areas Pension Fund, which is struggling to cover more than 300,000 retirees, widows and others.
Under the Congressional proposal, Nicodemus could see his annual benefits plummet from around $40,000 a year to as little as $15,000.


"I am disappointed in the fact that such an important matter is being done is such an underhanded way with little or no discussion of the consequences to millions who will be effected," he said.
Groups like the AARP, the Pension Rights Center and some worker unions say that retirees like Nicodemus are counting on their pension benefits, which they paid for through decades of contributions, and that other measures should be taken to save plans like Central States.
But supporters of the legislation counter that allowing for benefit cuts -- along with other changes included in the legislation, like allowing troubled plans to merge with healthier plans and doubling the insurance premiums employers pay the PBGC -- will help preserve the plans for both retirees and current workers.


One Cleveland plan, for example, has said it would only need to cut current benefits by 10% in order to prevent insolvency, said Randy DeFrehn, executive director of a coalition of employers and labor unions that crafted the proposal the legislation is based on.
Without any cuts now, he said that plan expects to run out of money by 2028, at which point all participants would see their benefits cut by 50% or more.
That's because if a multiemployer plan goes insolvent, a retiree is guaranteed less than $13,000 a year. In contrast, a retiree in a single employer plan that goes bust is insured for up to $60,000.
To make matters worse, the PBGC's multiemployer insurance program is itself projected to run out of money in the next decade unless changes are made -- meaning that workers and retirees in failing plans could be left with no benefits at all.

Culled from CNN money

COMBATING THE GLOBAL FINANCIAL CRIME AND CORRUPTION-Odunze Reginald

                  Images credited to Forbes

When Isaac Newton, the powerful scientist who enunciated the Newton’s Laws of motion lost his fortune in the South Sea Bubble Company of 1720 due to corruption. He said  and I quote  “I  can calculate the motions of heavenly bodies but not the madness of men”. Today in my people there is madness, everyone is thinking of getting rich quick. ( Kiyosaki 1990:70)

And according to Ojo (2009:11) in an article captioned, “Reps set to pass cyber crime bill, he stated that corruption has grown so wide to include advance fee fraud, password sniffing, hacking, web cramming, credit card fraud, identity theft , data kidnapping, software piracy, cyber squatting, unlawful interceptions etc”

The preamble to the 2003 United Nations against corruption (UNCAC), which Nigeria has ratified states that corruption “is no longer a local matter but a transnational phenomenon that affects all societies and economies. The African convention on preventing and combating corruption which Nigeria has ratified acknowledged the need for international co-operation to combat corruption and note the corrosive effect on individual and society” Falana 2008:120.

The world is a global village ,what affects economy in our society will definitely affect other economies and countries.

Continuing Falana stated that the ground corruption exacerbates scarcity of fund in Nigeria, frustrating any interest in enriching quality and life, Nigerian leaders must accept responsibility for the continued poverty in the country, he noted that ground and blatant corruption degrades life, he went further to say that in 2006 the Commonwealth working group on assets repatriation specifically refers to corruption being defined as  an international crime  and suggest that jurisdiction of the international court be extended beyond the prosecution of crimes against  humanity as defined in Article 7 of the Roman Statutes. Falana further  stated that the early draft of the statute did in fact include  reference to crimes other than crime against humanity such as Terrorism and Drug Trafficking.

Corruption has reached an alarming rate globally, and do we continue to fold our hands and watch corruption kill our great economy, the answer is an emphatic No.  It could be observed that most people who involved in corruption often end in poverty so also for a country. And as Prof Pat Utomi 2008 in “The Limit of lets share Economy, he stated that like people who won lottery, they often return to poverty.

Odunze Reginald

The Beauty of the New Pension Scheme -Odunze Reginald

orelowitz.co.za

In May 2001, Engineer Mike Agboola  retired as the chief Engineer of  Deck Engineering services Ltd. As at that the time Agboola was retiring he was full hope, aspiring into the next phase of his life as a senior citizen, He quickly rushed to the schedule officer, who has been handling pension issues in the company. The schedule officer referred him to the authorities concerned, on reaching Agboola discovered that his name was not in the master list , the schedule officer has misappropriated the money, an order was issued for his immediate arrest but before they could muster the necessary documents to get hold of him, he has escaped and find his way to a foreign country. Engineer Agboola was left without any pension, the family of 5 were in serious dire need of the basic things of life, coupled with Agboola first son who was completing his medical course.

Engineer Agboola died few years later, a dissatisfied man, the son had a negative picture of the state of the Nigeria economy and pensions, but with the help of relatives, he was able to complete his medical profession. and eventually found his way outside the shores of Nigeria,  practicing  his medical profession and any time he remembers his father, he vowed that he will not put his services to the country.

These were the state of pension in Nigeria prior to the 2004 Pension Reform Act. But all that have change, the pensioners in this new scheme are happier , able to access their money as at when due as the objective of the scheme in 2004 as in enshrined  Section 2 subsection a, b and c

(a) ensure that every person who worked in either the Public Service of the

Federation, Federal Capital Territory or Private Sector receives his retirement benefits as and when due:

(b) assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age: and .

(c) establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory  and the Private Sector.

And   in Pension Reform Act 2014, the objective under section 1 subsection a, b,c and d

(a)establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory , state Government, Local Government  and the Private Sector.

(b)Make provision for smooth operation of the pension scheme.

       (C) ensure that every person who worked in either the Public Service of the

        Federation, Federal Capital Territory or  public service of the State Government , or the public service        of the Local Government and Private Sector receives his retirement benefits as and when due:

       d) assist improvident individuals by ensuring that they save in order to cater for their   livelihood during old age.

From the objectives of the scheme it should be noted that the basic objective is to receive your retirement benefit as at when due, anything short of that, may not augur well to the pensioners.

And when this is achieved, the pensioner desires and aspirations are achieved, no matter how small the benefit may look, it tend to make the retiree live longer and happily.

 

reginaldodunze.blogspot.com( REGINALD ODUNZE.COM)

Tax Fraud Queen's 21 Year Prison Term Struck Down---Despite Facebook Taunts by Robert W Wood ( forbes)

How much her term will be cut isn’t clear, though the appeals court found procedural errors that added years to her prison term. Her sentencing was complex because Ms. Wilson was indicted twice in 2012. She pleaded guilty to illegal gun possession, and admitted netting over $3 million by aggravated identity theft and wire fraud in a tax refund scam.
The sentencing judge considered her prior conviction, the multiple felonies, and a formula that weighs the seriousness of the offenses and the defendant’s record. Ms. Wilson was hardly a discreet or modest criminal. She posed with stacks of money online, dubbed herself the “first lady” of tax fraud, and even taunted authorities on Facebook to catch her. She teased the police with online entries like this one:
“I’M RASHIA, THE QUEEN OF IRS TAX FRAUD… I’m a millionaire for the record, so if U think indicting me will B easy it won’t, I promise you! U need more than black and white to hold me down N that’s to da rat who went N told, as if 1st lady don’t have da TPD under her spell. I run Tampa right now.”
Investigators worked for years to gather evidence against Ms. Wilson and other fraudsters in something the feds called Operation Rainmaker. Wilson’s boyfriend, Maurice “Thirst” Larry was targeted, as was Marterrence “Quat” Holloway. But Ms. Wilson was the big catch. Before her coronation as tax fraud queen she had been arrested 40 times, with felony convictions for grand theft and burglary. 
Her online activities suggest that she thought she couldn’t be caught. Even in prison she caused controversy. She was supposed to begin paying restitution to victims but pleaded poverty in court. She claimed to U.S. District Judge James S. Moody Jr. that she earns a paltry $5.25 a month at the federal prison. She lamented that she has to pay for her own vitamins and hygiene items.
But the prosecutor’s response to the judge said Ms. Wilson’s prison account had deposits of $2,914.43 over six months, allowing her to spend liberally for herself. While incarcerated, Ms. Wilson is supposed to pay at least $25 per quarter toward the $3.1 million she and an accomplice owe the IRS for filing returns using stolen identities. Identity theft tax fraud is taken very seriously these days, much more so than some other tax crimes.

The Beauty of the New Pension Scheme -Odunze Reginald

orelowitz.co.za

In May 2001, Engineer Mike Agboola  retired as the chief Engineer of  Deck Engineering services Ltd. As at that the time Agboola was retiring he was full hope, aspiring into the next phase of his life as a senior citizen, He quickly rushed to the schedule officer, who has been handling pension issues in the company. The schedule officer referred him to the authorities concerned, on reaching Agboola discovered that his name was not in the master list , the schedule officer has misappropriated the money, an order was issued for his immediate arrest but before they could muster the necessary documents to get hold of him, he has escaped and find his way to a foreign country. Engineer Agboola was left without any pension, the family of 5 were in serious dire need of the basic things of life, coupled with Agboola first son who was completing his medical course.

Engineer Agboola died few years later, a dissatisfied man, the son had a negative picture of the state of the Nigeria economy and pensions, but with the help of relatives, he was able to complete his medical profession. and eventually found his way outside the shores of Nigeria,  practicing  his medical profession and any time he remembers his father, he vowed that he will not put his services to the country.

These were the state of pension in Nigeria prior to the 2004 Pension Reform Act. But all that have change, the pensioners in this new scheme are happier , able to access their money as at when due as the objective of the scheme in 2004 as in enshrined  Section 2 subsection a, b and c

(a) ensure that every person who worked in either the Public Service of the

Federation, Federal Capital Territory or Private Sector receives his retirement benefits as and when due:

(b) assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age: and .

(c) establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory  and the Private Sector.

And   in Pension Reform Act 2014, the objective under section 1 subsection a, b,c and d

(a)establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory , state Government, Local Government  and the Private Sector.

(b)Make provision for smooth operation of the pension scheme.

       (C) ensure that every person who worked in either the Public Service of the

        Federation, Federal Capital Territory or  public service of the State Government , or the public service        of the Local Government and Private Sector receives his retirement benefits as and when due:

       d) assist improvident individuals by ensuring that they save in order to cater for their   livelihood during old age.

From the objectives of the scheme it should be noted that the basic objective is to receive your retirement benefit as at when due, anything short of that, may not augur well to the pensioners.

And when this is achieved, the pensioner desires and aspirations are achieved, no matter how small the benefit may look, it tend to make the retiree live longer and happily.

Women see glass half full on financial security-Martha C. White

Women are feeling less financially secure than men these days, despite an improving economy, a new Bankrate.com survey finds.

‘“It’s not an anomaly,” said Bankrate.com chief financial analyst Greg McBride. “This is a consistent reading, month-in, month-out.” While men feel that their financial circumstances improved over the past year, women view their financial security as having deteriorated slightly.

KAREN BLEIER / AFP/Getty Images

Women are feeling more financially insecure than men these days, despite an improving economy.

Bankrate creates its financial security index by measuring respondents’ sentiment in five categories: job security, comfort level with savings, comfort level with debt, net worth and overall financial situation. Women were less optimistic than men in all five categories, McBride said.
“I think it still stems from the fact that women feel less confident when it comes to their finances in general,” said Zaneilia A. Harris, president of Harris and Harris Wealth Management Group.
Although job losses and wage stagnation have hit both men and women, Harris argued that women were at a disadvantage in the recovery. High-paying fields such as technology tend to be male-dominated, she pointed out. “You still have us mainly focusing our skill sets in healthcare, in education, in nonprofit — and those positions aren’t going to pay us the salaries we need,” she said, adding that women are also less likely than men to negotiate higher salaries.
Research from the Sloan Center on Aging & Work at Boston College finds that women place a higher priority than men on their job security, but that they’re also less satisfied with their level of job security. Tay McNamara, co-director of research in secondary data studies, suggested via email that this combination could contribute towards women having a dimmer view of their overall financial security.

Video: July 14: In an era of mortgage meltdowns and banks going belly-up, CNBC's Steve Liesman looks at whether it's possible to feel financially secure.

Women also have demographics working against them. “Women live longer, they’re more likely to be single parents [and] caring for aging parents... and women are more likely to be out of the workforce for a period of time in their life,” McBride said.
Other research has shown that female investors tend to be more risk-averse than their male counterparts, which could play a role. “Being risk-averse in investments is associated with a fairly large reduction in your assessment of your finances,” said Steve Sass, program director for the financial security project at the Sloan Center.
Since the research is ongoing, Sass said it’s still unclear how these two viewpoints affect each other, but they could contribute to women entering retirement with inadequate savings. “Risk aversion will almost guarantee that your nest egg won’t grow [as well],” he warned.
Since women have this additional burden, it’s important that they be especially proactive about securing their financial futures, McBride said. “All of that really adds an urgency to women of all ages to take full advantage of tax-favored retirement savings opportunities,” he said.

Culled from NBC