Being Proactive
But what if you would rather not hold your breath and wait for an overhaul of federal policy?
Kathleen Burns Kingsbury, an expert on wealth and psychology who has written extensively about women and financial planning, suggests ways that women can take steps to blunt the impact of wage inequality on retirement. That starts with taking a proactive stance in negotiating for more pay. “Women need to close the pay gap by learning how to negotiate and talk about money,” she said.
When it comes to financial planning and managing money, it is not that women lack interest or knowledge, she notes. “Many women want to be more involved in their finances but struggle to find the time to do it. The financial literacy scores are about the same for men and women -- in other words, both genders have work to do in this area. But women are more likely to admit when they don't know something and therefore appear to have lower financial confidence than men.”
Women who are working with financial advisors -- or want to -- should consider working with a “female-friendly advisor,” she said. “Some women are hesitant to take on investment risk and this can work against them when saving for retirement. But if you have an advisor you trust, you can learn how to take calculated risks and make investments that will help you reach retirement goals.”