When it comes to gender and money, there is no shortage of statistics on how the sexes stack up. There is a narrative that states that women are bad investors, quick to spend and ill-informed about their retirement savings. A new report out of from a major financial institution shows just the opposite. The study found that women are more likely to participate in workplace saving plans, contributing higher amounts in workplace saving plans, than their male counterparts.
When it comes to retirement savings, women just can’t win. Even with women being more likely to participate in plans and contribute higher amounts, the average women’s retirement account balance is half of the average’s man’s. The difference is due to the pay gap with men making more money. Women are also living longer than men. According to the Social Security Administration, women have an average life expectancy of 86.6 years, which is 2.3 years longer than the average man’s life expectancy of 84.3 years.
Women often leave work to bring up children or care for elderly relatives leaving them with fewer total working years. Working fewer years in the workforce, fewer years with a single employer and lower pay all are factors meaning that women qualify for much lower pension benefits.
Men and women may not be on equal footing when it comes to investing for the future. With working fewer years, earning less and living longer, women must focus on the concerns that are unique to them when planning for retirement. We can help.
Raymond C. Lantz, Jr. is the president and founder of USA Wealth Group, Inc. Ray has many years of experience advising clients in retirement and sophisticated tax planning strategies, multi-family and commercial real estate projects, and legacy planning. Ray is a graduate of Clark University, holds a law degree from Boston College, and a master of laws in taxation from Boston University. You can hear him every Sunday on Money Wise with Ray Lantz on WBSM 1420AM or on the Radio Pup app.