When I look at the life issues faced by both men and women, but specifically woman, I am faced with the issue that retirement planning is really a women’s issue. Or more importantly that the lack of retirement savings becomes a women’s crisis. There are a few important factors to take into consideration.
1. Women live longer. For U.S. men, the average life expectancy is 76, while it’s 81 for U.S. women. That’s a five year gap. Both of my grandmothers outlived their husbands by nearly 40 years!
2. Women more often than men take work breaks to raise children. I was out of the work force for nine years. Some women take less time and some take more. But this break in work affects our social security and often the rate we move up the pay scale.
3. There is a gender pay gap. women working full time in the United States were typically paid just 80 percent of what men were paid.
4. There is also a gender investing gap. Women invest less and most often park their money in cash.
All of these factors combined scream that a lack of retirement savings will be a women’s crisis as we age. We need to educate ourselves now and for our futures.
I am very thankful that the community here at Sum180 is helping turn the tide in the gender investment gap. The first step is planning and having the conversations. Paying down debt, creating the emergency fund, maxing out retirement savings, getting the matching on our 401(k)s and, identifying investment vehicles. Sum180 is helping me stay the course. Thank you!
As a woman, where are you in closing the investment gap? In planning for your retirement?