Why women need to save more than men for retirement
It's no secret that women have more trouble than men in successfully securing their retirement, largely due to smaller salaries, less time in the workforce, lower lifetime earnings and inconsistent retirement savings.
Generally speaking, the woman in the family is usually younger than her partner and is more likely to have more gaps in her employment history since women's careers are frequently interrupted to raise children.
So it may not be that great a surprise to hear that one area where men seem to be winning out is retirement confidence, the Employee Benefit Research Institute reports.
According to EBRI’s research, men are more likely than women to say they’re very confident that they will have saved enough to live comfortably throughout retirement and are equally sure about having enough money to take care of basic expenses and medical costs.
While confidence is part of the equation when saving for retirement, having a realistic idea of how much is needed in retirement is also key.
Women seem to lose out in this arena as well, with 35% of women believing they will need less than $250,000 for retirement, compared to 26% of men, despite the fact that women live longer and tend to have higher healthcare costs.
In addition, women (12%) are more likely than men (5%) to say they do not know how much they’ll actually need to save, EBRI reports.
When it comes to actually saving for retirement, gender doesn’t seem to have as big an impact though. Men and women are equally likely to say they’ve currently saving for retirement.
The good news: Women are statistically as likely as men to have a job that offers a work place retirement savings plan and to contribute to it, according to EBRI -- a major change compared to even a decade ago.
Do men and women view retirement that differently? Are you confident that you're on track? Or do you even look that far ahead?
By Gordon Powers, MSN Money
* Follow Gordon on Twitter here.
Posted by: Chip | Apr 28, 2021 1:10:59 AM
Let me ponder Mr. Power's question. "Why do women need to save more than men for retirement" ? Hmmmmmmmmmmmmmmm !!!! Would the answer have anything to do with... SHOPPING !!!!!!!!!!!!
Posted by: Russ Rowe | Apr 28, 2021 3:16:10 PM
You only have to look at the statistics to realize that women live longer. That means that anuities are lower to reflect the longer term.
Posted by: Steven | Apr 28, 2021 8:16:44 PM
I think women do view retirement differently. Most women I know still believe that there will be a retirement available for them in their old age. On average, many men realize that unless something drastically changes there won't be traditional retirements for most people.
That said, if healthcare and workplaces improve would we want to retire?
Posted by: Jackie | May 4, 2021 9:21:50 PM
How are we supposed to save more than men for retirement, when we usually cover our kids' expenses, earn less than men do, and are trained from childhood to spend lots on clothing, makeup,etc?
Posted by: megg | May 8, 2021 9:23:17 PM
BUT- women don't necessarily earn less than men! eg teachers earn equal salary - both females & males earn a salary based on her/his education, years of experience and position.
You might want to suggest to your daughter/s to choose an occupation with equal pay.
Just out of interest- I personally know of 5 females who earn well over $100,000.00 a year. (not teachers) Those women are in an executive position and earn the same amount that a man would if he was the earner- doing the very same job.
So- make a choice- do you want 4 children to raise, or ONE child that your husband can provide for more easily...