Money: The Gender Gap We Need to Worry About: Retirement-Savings Shortfalls - PressFrom - Canada

MoneyThe Gender Gap We Need to Worry About: Retirement-Savings Shortfalls

16:00  25 june  2019
16:00  25 june  2019 Source:

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Income Insights: Gender Retirement Gap . Women need to save almost twice as much increasingly. The Gender Retirement Gap is not only vast, it is long lasting. Women face hurdles during their savings This nine year shortfall means that women work 75% of the years that men work. Income Insights: Gender Retirement Gap . Stop worrying about losing money and start worrying about

Even so, the Global Gender Gap Report 2018 calls for us all to ask ourselves some tough questions. We need to ask ourselves: are we really making gender equality a priority? And if so, are we committed to doing so in the shortest amount of time possible?

Most Americans aren't saving enough for retirement, leading to big retirement-savings shortfalls. In fact, according to Employee Benefit Research Institute (EBRI), more than four in 10 families where the head of household is between the ages of 35 and 64 will run short of money during their retirement.

Not all households are equally short on cash for the future, though. In fact, EBRI found a shocking discrepancy between the projected retirement-savings shortfalls of older single women and those of older single men. The gender gap in retirement savings should concern everyone, but especially women -- who tend to be paid less than men, and who also tend to suffer career penalties if they choose to have children.

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Hearing her worries , the colleague recommended she check out a This means their retirement savings need to cover longer life spans. A median 45-year-old man is projected to have a savings shortfall of 7,233 to meet average retirement expenses at age 65, according to Financial Finesse.

New Report: Are we saving enough for retirement ? Read more. In fact, the gap between men and women across health, education, politics and economics widened for the first time since Image: WEF Global Gender Gap Index. Countries need to pay attention to the gender gap not only because such

The Gender Gap We Need to Worry About: Retirement-Savings Shortfalls© Getty Images Older woman looking worried

There's a huge gender gap in retirement readiness

According to EBRI, single women between the ages of 60 and 64 have an estimated retirement-savings shortfall of $62,127, while single men have a shortfall of $24,905. While both single men and single women are at risk of running out of cash during their golden years, obviously the risk is far greater for older women.

Widows, too, face a bigger risk of running out money than widowers, although the gap isn't nearly as extreme as the discrepancy between projected shortfalls for single men and those for single women. For widows, the projected retirement-savings shortfall is $15,782, while it's just $12,640 for widowers ages 60 to 64.

What can women do about the shortfall?

For women who have too little money saved as they near retirement age, working longer is one possible option. Women tend to have longer lifespans than men, so some could spend a few extra years in the workforce while still enjoying retirement for the same number of years. Working longer could allow women with a retirement-savings shortfall to set aside more money for the future. It could also result in higher Social Security benefits, as waiting to claim Social Security can increase each monthly benefit up to the age of 70.

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The problem of the gender pay gap in retirement is quite stark. Coates notes that “men’s superannuation balances at retirement are on Instead, Coates suggests if the issue we are worried about is that women retire with comparatively less savings than men and are at much greater risk of

That gap is even greater broken down by race, with single African-American and Latina women owning less than one cent for every dollar owned by single So, how do women build wealth differently than men, and why is the gap so big? Part of the difference results from the type of employment women

For younger women who are still working, there are more steps that could be taken today to help reduce the retirement-savings shortfall. One of the most important is advocating for policies that close the gender pay gap. As long as working women make less than men in similar jobs, a retirement gender gap is likely to continue to exist. After all, it's harder to save as much for the future when your salary is smaller than those of your male counterparts.

Women also need to understand their rights, and speak up if they are being paid less than men for comparable work. This is a violation of federal civil rights laws, and women can take legal action. At the very least, they can talk with their bosses about bringing up their incomes to levels on par with male peers.

Studies have shown men are also more likely to negotiate their salaries than women, and more apt to apply for jobs they aren't 100% qualified for. When working women take a new job or begin a job search, they can adopt these techniques by not accepting the first offer they're made by an employer, and by applying for jobs that are a bit outside their comfort zone.

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“ We obsess about things that honestly aren’t important in the scheme of things, because you’ve been Behold the power of gender : were men to take on more of this worry work, many women would presumably “There is only what feels so intensely like it needs to be done that it needs to be done…

There is a 95 percent gender gap in the savings shortfall when looking at what is needed to cover the estimated retirement expenditures for the average This year in its annual Gender Gap in Financial Wellness Report, Financial Finesse’s Think Tank examined the gender gap as it relates to the current

Advocating for family-friendly policies, such as paid parental leave and flextime, can also help both men and women to better balance the obligations of work and family. While things are becoming more equal, women still suffer a motherhood penalty that can affect their careers and, in turn, impact their ability to save for retirement.

Saving more for retirement is important for everyone

Ultimately, while increasing income and advocating for a more equal society would be the best way to solve the gender gap in retirement readiness, change is slow to come.

Women who want to make sure they have enough saved for retirement will simply need to make savings a priority, and budget to save at least 15% of income for their golden years. Of course, this is good advice for people of all genders, as the retirement-readiness gap affects everyone, even if it affects women more.

Saving this much for retirement can seem burdensome. But slowly increasing retirement-account contributions, and taking advantage of tax breaks for retirement savings, could help everyone make sure they don't fall short in funding their post-working years.

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That gap is only slightly better than the 9.6% recorded in 2015 but at least an improvement on 17.4% back in 1997. At this pace, it will take decades to close the gender pay gap . There has been much debate about how much Green has offered the regulator to support the BHS pension scheme, which

The gender gap is widening again for the first time in a decade. Paul Polman, Unilever's CEO, believes challenging stereotypes could be the key. To close the gender gap , we need to change how we think. New Report: Are we saving enough for retirement ?

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