You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Alibaba poised to surge on the NYSE
      NEW YORK – Chinese e-commerce powerhouse Alibaba will say “open sesame” to the New York Stock Exchange on Friday, as its shares begin trading in a highly anticipated debut that could raise up to $25 billion.
  • 56 million at risk in data theft
    NEW YORK – Home Depot said 56 million debit and credit cards are estimated to have been breached in a data theft between April and September at its stores in the U.S. and Canada.
  • Ellison stepping aside as Oracle CEO
    SAN FRANCISCO – Oracle co-founder Larry Ellison is stepping aside as CEO after 37 years at the helm of the business software maker, ending a colorful reign marked by his flamboyant behavior and outlandish wealth amassed while
Advertisement

Women lagging men in retirement savings

– Women are just as likely to put away money for retirement as men – but they are way behind their male counterparts in total savings, a new study shows.

Men had an average of $139,467 in individual retirement accounts as of 2012, compared with an average of $81,700 for women, according to a report released last Wednesday by the Employee Benefit Research Institute, anorganization in Washington that focuses on health, savings and retirement issues.

Women moved money into their IRAs just as often as men did, the study found. This was true for IRAs overall; for Roth IRAs, which require contributions of after-tax dollars; and for traditional IRAs, which can include tax-deductible contributions.

Although women are just as likely to add to IRA accounts as men, they make smaller contributions on average. In 2012, female IRA account holders contributed an average of $3,995, compared with an average of $4,023 by men, according to the EBRI study. The difference is slight, but the pattern held true for most age groups, according to the study.

A couple of factors could explain those smaller contribution amounts, said Craig Copeland, an EBRI senior research associate. Some married women may make joint IRA contributions with their spouses, and those accounts may be under their husband’s name, he said.

Some women may be limited in how much they can put away for retirement because of other responsibilities, such as single mothers delaying retirement savings to cover child-care costs and some women deciding they would rather set aside money for a home.

But the most likely reason, he said, is not surprising: Women make less on average than men. Women earned about 77 cents for every dollar earned by men in 2012, according to the latest data from the Census Bureau.

Advertisement