Women Participating in 401(k) Plans Less Than Men

In a study of over 2,000 companies, Wells Fargo recently announced that 49% of men and 43% of women enroll in their employer-sponsored retirement plan. Compare this to Wells Fargo’s “recommended contribution index” measuring how many people are saving a minimum of 10% for their 401(k), in which 43% of men and 39% of women hit this target.

Additionally, a study from last fall by Fidelity Investments found that 19% of women hold primary responsibility for long-term retirement decisions, up from 9% in 2011.

Joe Ready, director of Wells Fargo Institutional Retirement and Trust, believes that “In general, all men and women need to take full advantage of their workplace retirement plan and embrace the 401(k) as the primary retirement benefit. In our view, if people have access to a 401(k) they should try to save at least 10%. The power of saving regularly, coupled with the compounding effect of time, can create a financial foundation for people that results in much greater retirement security.” [emphasis added]

Despite the difference in participation rates, women appear to have more diverse investments in their 401(k) than men do. 70% of women have a minimum of two equities and a fixed fund and less than 20% in employer stock in their 401(k)s, while this number is 67% for men.

Women can sometimes be underestimated by financial advisors. When you work with a financial advisor and rely on their advice, you are often subject to their decisions or those of a custodian. One of the best ways for women to take control of their finances is by setting up a self-directed IRA. This type of account gives individuals freedom and greater control over their investments without restrictions from a custodian. Self-directed IRAs can also include precious metals.

The keywords here are retirement security and diverse investments. Rolling over your 401(k) into a Gold IRA provides some of the best security for your retirement funds out there. Gold has long been proven to be a stable, safe-haven investment providing protection from inflation, potential market collapse, and geopolitical tensions. Adding precious metals to an IRA is also a great way to diversify your portfolio. Call American Bullion at 1-800-326-9598 today to speak with a precious metals expert and be on your way to setting up a Gold IRA.