This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Women Better at Day-to-Day Saving, But Have Less to Retire On

NEW YORK (TheStreet) -- Women are better at saving, but it's getting in the way of their long-term retirement planning.

BlackRock surveyed 17,500 people -- including 9,000 women from around the world and 4,000 women from the U.S. -- and found that women see personal financial issues as important on a "day-to-day" basis, especially when it comes to saving and paying down credit card debt.

That may be laudable, but globally men are more likely to emphasize long-term savings (59% do) than women (52% do), according to the survey, and in the U.S. that gap grows wider: 55% of men here have started saving for retirement and have a plan in place, as opposed to 45% of U.S. women.

"Simply put, when it comes to money, women and men today see the world quite differently," says Sue Thompson, a managing director at BlackRock. "Women have a profoundly sober financial perspective, apparently more influenced than men by the realities of today's market volatility and ongoing economic uncertainty."

The survey suggests, but doesn't flat-out say, that women take that view of their long-term financial picture because their immediate financial position seems fragile.

BlackRock says women are way more likely than men to choose "negative terms" to describe their finances, with terms such as "nervous," "sober," "pessimistic" and "frustrated" appearing frequently.

That stops women from taking risks to increase their financial fortunes. Black Rock says only 22% of women across the world are "willing to take on higher risks to achieve higher rewards," so instead of investing in stocks, they put all their money in the bank.

But bank certificates of deposit average around 0.19% these days, according to the CD Rate Tracker, and that figure has been roughly consistent for the past few years. Meanwhile, stocks have risen at a double-digit rate as measured by the Standard & Poor's 500 index, with five-year returns hitting 21.53% recently.

Women's behavior is going to have to change if they are to meet long-term financial needs. While times are tough, more women still have to take a wider lens to their personal finances, and do a better job of balancing their day-to-day financial obligations with the necessity of meeting their long-term financial obligations.

"They place greater emphasis than men on day-to-day financial planning and maintaining the household balance sheet," Thompson says of women, "but this focus also seems to undercut engagement around longer-horizon activities such as retirement planning as well as investment," she says.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs