Why Retirement is Harder for Women
It’s no secret that retirement planning is often neglected, especially by young adults. However, a new study has found that the problem is particularly acute for women. According to the US Census Bureau, about 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men. The gender gap persists even when other factors, such as income and education, are considered. This is troubling news for women already facing many financial challenges, such as the gender pay gap and the high cost of childcare. With more and more women carrying most of the financial burden for their families, more needs to be done to ensure they’re prepared for retirement. One way to start is by increasing awareness of the issue and providing resources and support for women trying to save for their future.
So what is it that makes retirement so difficult for women?
Women typically earn less than men throughout their careers, making it more challenging to save for retirement. In addition, women are more likely to take time out of the workforce to care for children or aging parents, which can also set them back financially. Women also have longer average life expectancies than men, meaning they need their retirement savings to last longer.
Divorce and widowhood can also lead to a decrease in retirement savings for women. After a divorce, assets are often divided between the two spouses, leaving women with less. And if a woman’s husband dies, she may be left with little to no retirement savings.
Retirement planning can be an intimidating task, but there are several simple steps that women can take to ensure a comfortable retirement. One of the top retirement savings methods is opening a Roth IRA and contributing as much money as possible. Another option is to purchase an annuity which may provide a steady income during retirement. Additionally, it’s essential to be mindful of expenses and ensure you are budgeting for retirement. By taking these simple steps, women can strengthen their retirement plans and enjoy a worry-free retirement.