When it comes to retirement, women can experience more challenges saving for retirement than men. Some of these challenges include leaving the workforce to care for children or other family members and lower pay or challenges in finding full-time employment.
According to the Transamerica Center for Retirement Studies, only 12% of women are very confident they can retire comfortably, compared with 23% of men. Here are several of the reasons retirement could be different for women than men.
The life expectancy for women is generally longer than it is for men. Therefore, women require more money to cover a longer retirement. Unless they plan and save appropriately, they risk premature depletion of their retirement assets and possibly living in poverty.
Even though more women work more today in professional jobs than in the past, a gender pay gap still exists. The U.S. Census Bureau discovered that women earn about 75% of what their male counterparts earn. This discrepancy can make it more difficult for them to save for retirement.
Women usually take some time off of work so they can care for their children or senior parents. On average, they spend nine more years out of the workforce than men. Less time working reduces their overall lifetime earnings and retirement savings.
Since women are more likely to work part-time or contract positions to enjoy flexible schedules, they don’t always receive retirement benefits. In this situation, women can open their own retirement accounts but might miss out on a company match.
Despite these challenges, women can thrive in retirement by implementing these tips:
If you’re a woman planning for your retirement, we can help. Count on us to review your financial situation and help develop a retirement strategy basing on your needs.
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For those who are looking for financial advice, we realize the available options are many and deciding who to work with is a challenging problem. At Sterling Oak Wealth Management, we know that it is your retirement, and you should have control over it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!