Reasons Women Need To Save More For Retirement

shutterstock_101621911In this male dominated society, women always seem to be holding the shorter end of the stick. Women generally tend to earn less than their male counterparts. Although the society is gradually changing in terms of recognizing the equality between genders, it has so far been slow moving. On the long term, aging women may have the unfortunate situation of preparing for their retirement poorly. Women generally have to save up more in order to enjoy the type of retirement they expect. Here are some reasons why.

Women earn less than men during their lifetime.
On average, women earn less than most men. According to some gathered data, full-time women employees pulled 79 percent of the income that men pulled in one year. Women also tend to do part-time jobs more than men, an arrangement that leads to lower incomes.

Women tend to invest less.
Most women do not always thing of trying to invest their savings. It robs them of the opportunity to let their income earn more for them. What would have been added retirement savings in terms of added earnings from investments are neglected.

Women tend to spend less time in the workforce.
Women also tend to spend less years on the workforce. Most usually stop working after marriage in order to focus on raising and taking care of their family. Some women may also stop in order to take care of aging parents. Some life situations will cause women to cease working even at the peak of their working years.

Women live longer than men.
Women also have longer life spans compared to men. This means they have to spend more years in retirement. Combine that with earning less income and a shorter time being part of the workforce, women are in a very precarious situation when it comes to their retirement situation if they do not plan to save more for it.

 

Posted by Ardent Editor on Oct 17 2015 in Women & Retirement Tags: , , , ,

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