The first is the fact that women in the american labour force are paid less for the same job. While over time this margin has been getting smaller and smaller, it is still significant. Women have been shown to gain 24 per cent less than men in a recent report by the U.S. Department of Labor for doing the very same job. This can have serious consequences when it comes to retirement savings.Learn more by visiting challenges to retirement plan success
The Department of Labor’s same report also found that women spent less time working than men on average. There was a difference of seven years in the study because of the time that certain women take off to have children, raise a family or care for elderly or sick parents. Although the obvious influence on the amount of money received in a lifetime is clear, there is also the effect of work on some kind of retirement plan, as well as less social security.
As if that wasn’t bad enough, the last U.S. Census found women are living longer than men on average for seven years. Yes, not only do women earn less and spend longer in the workforce in fewer years, they also live longer which means they need to save more for retirement.
What does that mean? It means women will need to take a slightly more conservative approach to save for retirement. It also suggests that women need to start saving and spending much earlier than men. Other good tips are setting targets differently from your husband, since your set of circumstances is different. You would also want to have even more diversification in your portfolio than others so you won’t be left with anything if any of your investments go sour. Staying on top of your savings is a smart idea too. Reviewing them on a regular basis lets you know where you are doing well, and where improvements may be needed.
While it is tragic that a woman will need a completely different retirement savings plan than her husband, the truth remains that there are forces at work working against women. But each will enjoy a safe and stable retirement with the right plan and the right goals.