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The Unsettling Truth About Women And Retirement

(Source: www.forbes.com)

    Many Americans struggle with retirement planning, but women face a particularly dismal outlook. The National Institute on Retirement Security reports that they’re 80% more likely than men to be impoverished at age 65 and older.

    What’s contributing to the financial insecurity of aging women? Here’s a look at the variables at play.

  1. The wage gap

    : In 2016, women earned about

    80%

    of what men earn

    and experts forecast that it won’t be until

    2059

    that we can expect that gap to close. And if

    most Americans

    are behind in saving for retirement, women’s lower lifetime earnings mean they’re likely falling into the bottom rung of the ill-prepared.

  2. They’re more likely to be caregivers—of children and parents

    : According to the AARP, the

    majority

    of caregivers are women.

    Research

    on caregiving points to a number of career concessions women may consider during their lifetimes, including turning down promotions, decreasing hours or retiring early. According to a Pew Research Center

    survey

    , mothers were nearly three times more likely than men to have quit a job to care for family.

  3. They’re more likely to work part-time

    : In 2016,

    25%

    of female workers were employed part-time, compared to just 12% of men. Part-time work not only means lower lifetime savings, but it can also impact eligibility for certain employer benefits and retirement plans.

  4. They outlive men

    :

    Life expectancy

    for women is roughly 81 years compared to 76 for men. Cindy Hounsell, president of the nonprofit Women’s Institute For A Secure Retirement, believes that longevity is one of the most overlooked factors to blame for the financial challenges so many retired women face.

    “The healthcare costs for older women are much higher than for men and they end up living longer,” Hounsell says. “They have to pay for these things for a long time.”

  5. Different women face different obstacles

    : Women of color face an even steeper uphill battle as they age: the National Women’s Law Center

    reports

    that poverty rates for black and Hispanic women age 65 and older are about double that of white women.

More Info: www.forbes.com

Money Matters
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