It's easy to think that gender shouldn't impact your financial planning - but it does. Women live longer and are more likely to stop working for a period of time to care for children or aging parents. Here are some more reasons women need to think differently about retirement:
- Up to 75% of caregivers are women who spend more time out of the workplace caring for family members.1
- Women who work reduced hours or part time are often not eligible to contribute to a retirement plan.
- On average, women earn about 80 cents for every dollar earned by men.2
- A 65-year-old woman can expect 13% higher health care costs than a man.1
- Social Security benefits are 23% lower for women based on lower lifetime earnings and longer life expectancies.1
Women earn and save less
Women, who leave the workforce for periods of time to raise their children or care for an aging parent, may find that their retirement savings are impacted. They have spent less time in the workforce and their earnings lag behind their male co-workers who stayed in the workforce continually. The result is that women may end up contributing less to their retirement plans and earning lower benefits from Social Security.3
According to the Insured Retirement Institute, it has translated into a 25 to 30% shortfall for women’s retirement savings compared to men’s savings.1
Taking charge of your retirement
These issues are difficult, but not impossible to overcome.