SOURCE: Scottrade IRA

May 30, 2011 05:00 ET

Designing Women by Scottrade

Women's Confidence in Saving for Retirement Is on the Rise, and Their Tactics Differ From Men's

MISSION, KS--(Marketwire - May 30, 2011) - (Family Features) Women's confidence in designing their retirement futures is on the rise, and they are ahead of men in finding ways to increase cash flow during retirement as well as cut costs now.

According to a survey commissioned by online investing firm Scottrade, Inc., women's confidence in their ability to plan for retirement has reached a three-year high, with 69 percent of women rating their confidence level as good or very good, putting their confidence level on par with men's for the first time in years.

The most recent U.S. Department of Labor statistics show that women account for nearly half of the American workforce, and the number is growing. As employers invest more in women, it seems that women are investing more in themselves, taking proactive steps to get the most out of the money they earn by becoming more financially savvy investors and spenders.

Forty percent of women have structured their portfolios to include investments that will generate income during retirement, compared to 30 percent of men, according to the Scottrade study. And just over half (51 percent) of women say that generating income during retirement is more important to them now than it was one year ago.

In addition, the study found that women are more likely than men to take proactive steps to address finances by finding ways to save money. Ninety-four percent of women are taking measures to save money versus 88 percent of men.

Many of the steps women are taking are simple things that anyone can start today:

  • 71 percent are using coupons
  • 63 percent are comparing prices to find the best deal
  • 58 percent are cutting back on purchases like clothing
  • 52 percent are cutting back on entertainment, such as dining out and going to the movies

Craig Hogan, director of customer intelligence at Scottrade, has seen an increase in investors seeking out easy-to-use products, tools and resources to help them self-direct their investments and trade with more confidence. "In addition to finding the tools they need to manage their investments, investors come to us because they are looking for a good deal," he said.

Hogan said that it is important for investors to get educated on their own finances, as well as on their savings options, as they prepare to take the reins on planning and saving for retirement. To get started, he says to:

  • Take stock in your current situation. Review your accounts and your current financial situation so that you understand your portfolio.

  • Get a realistic picture of how much you'll need. Determine how much you'll need to save for retirement by using an online retirement calculator, such as the one at www.scottrade.com.

  • Get educated. There are many investment options available. To make informed retirement investment decisions, you need to understand your choices. Scottrade's extensive Knowledge Center, available at www.scottrade.com, offers free educational resources and interactive tools to help investors create financial and retirement plans.

Visit Scottrade's research findings for more information on the 2011 American Retirement Survey.

Contact Information

Multimedia