A British report demonstrated that only 21% of men and 32% of women earning less than 300 pounds ($488.04) per week are putting funds into a retirement account. On the other hand, people earning over 600 pounds ($976.08) per week are investing. 76% of men and 82% of women in that bracket are investing for retirement.
This study gives two interesting perspectives. First, and most obvious, people that earn more are doing more to save for their retirement. This leads me to wonder: are people saving more because they earn more or are they earning more because they are financially savvy? It is important to remember that correlation does not imply causation in statistical reports.
It is important to remember the “pay yourself first” philosophy if you are struggling to invest for your retirement. For example, most of us work at jobs that have 401(k) savings plans. Our companies give us the option to take money out of our earnings before they hit our bank account. Take full advantage of that, along with 100% of any company match, to ensure that you do not tempt yourself to spend the money that you should be saving for later in life.
Another striking statistic from this report is the number of females contributing to retirement plans compared to males. Maybe women really are just smarter than us? I don’t think so. This report showed that in the UK, where the study was conducted, women disproportionately worked in public sector jobs, and those (both men and women) in public sector jobs were more likely to contribute. Still, the girls are beating us on this one. Either way, everyone needs to do more.
What can you learn from this? The same thing you learn from this blog every day. It is no one’s fault that you do not save for retirement except your own. Do something about it. Setup your 401(k) or IRA today. Don’t say that you can’t afford it. Don’t say that it is too difficult. Take an hour and setup a system that will help you for the rest of your life.
