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20 n e w h a v e n B I Z | A p r i l 2 0 2 3 | n e w h a v e n b i z . c o m Closing e Gap F O C U S : B a n k i n g a n d F i n a n c e By Michelle Tuccitto Sullo W ho doesn't dream of a com- fortable, worry-free retire- ment with plenty of money in the bank to enjoy hob- bies, travel and relaxation? More men than women are closer to that goal, as many women still lag behind their male counterparts when it comes to retirement savings. Most women's total retirement sav- ings is less than men's across genera- tions, according to a November 2022 report from the Los Angeles-based nonprofit Transamerica Center for Retirement Studies. e report showed an estimated median savings of $101,000 for Baby Boomer women, born between 1946 and 1964, compared to $248,000 for Baby Boomer men, for example. About 50% of women ages 55 to 66 have no personal retirement savings compared to 47% of men, according to statistics from the U.S. Census Bureau. Kenneth Russell, president and CEO of Grey Ledge Advisors in Guilford, said there are multiple factors at play. e gender pay gap is one, he noted. In 2022, women earned an average of 82 cents for every dollar earned by men, according to the Washington D.C.-based Pew Research Center. Another factor is that women may temporarily leave the work- force, such as when their children are young, which also means their indi- vidual retirement accounts or 401(k)s don't build up as much, according to Russell. Bethany Lardaro, vice president, private client advisor at e Wash- ington Trust Co., which has offices in New Haven, noted that women tend to live longer in retirement — nearly six years longer than men, according to the U.S. Centers for Disease Control and Prevention — so their need to save is greater. "at means our capital needs to fund our retirement are greater than our male counterparts," Lardaro said. "So, it's important women develop a financial plan to build and maintain their wealth." ere are positive trends for wom- en's quest to reach their financial goals. According to a 2021 Fidelity Invest- ments "2021 Women and Investing Study," 67% of women are now in- vesting outside of retirement, up from 44% in 2018. Analysis of more than 5 million Fidelity customers over the last 10 years finds that, on average, women outperformed their male counterparts by 0.4%. However, only 33% of women feel confident in their ability to make investment decisions and just 42% of women feel confident in their ability to save for the long term, including for retirement, according to the study. It indicates that 69% of women wish they had started investing their extra savings earlier. Gender differences Women do have several factors go- ing for them, such as a tendency to be more cautious, according to Russell. "Women tend to be more conser- vative investors than men, which is actually a good thing," Russell said. "Men tend to suffer from some be- havioral finance bias. Men generally believe they are better at investing than they are. ey tend to overly and aggressively trade. So, as a result, it has been proven that women's investment results are generally more consistent and better over time." Women's relative lack of confidence in their investment ability can actually help them, according to Russell. "Women don't take undue risks," Russell said. "ey are better at buying and holding. Studies have shown that women work better with advisors and listen to their advisors, and as a result, they tend to have better investment funds." Lindsey Allard, managing director at Beirne Wealth Consulting Services LLC in Shelton, in 2018 launched Women on Wealth, a platform to help women make informed financial deci- sions and to encourage financial and personal growth. She said she sees positive trends for women in investing. "Women have been taking control of their current financial state and their financial future, as women are manag- ing more money, more assets than ever before," Allard said. "I think that there is a real opportunity for women to take even more control of their financial futures moving forward, whether that means retirement, starting a business or whatever their goals are." Tips, tricks and solutions What do experts recommend wom- en do to invest more, increase their portfolios and help close any gender Experts offer advice for women's financial futures Kenneth Russell Bethany Lardaro Lindsey Allard, managing director at Beirne Wealth Consulting in Shelton. PHOTO | CONTRIBUTED

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