Three Part Series (3 of 3)

How Can Women Close the Retirement Savings Gap? (2 min read)

Women expect they'll have a five-year income shortfall in retirement. Men, on the other hand, believe that their income will be enough to meet their needs.

Here's the third of three things a woman can do to shore up their savings:

About 25 percent of the women and nearly 2 in 10 men polled by MassMutual said they were comfortable with a little investment risk, even if it meant accepting below average investment returns.

Whether you should increase your exposure to the stock market depends on a number of factors, including your time to retirement and tolerance for risk. 

Avoid going whole hog into stocks if you're approaching retirement in order to make up for meager savings. A market downturn when you're about to stop working can be devastating to your finances.

"You can't make up for a lack of saving and compounding by ratcheting up your market risk in your 60s and 70s, . . . . punching the clock for a few more years so that you continue to save might be a better call.

Source: CNBC


Popular Posts