Women may have a disadvantage when it comes to retirement – St George News

File photo by Fizkes / iStock / Getty Images Plus, St. George News

ST. GEORGE – Achieving financial fitness through creating and increasing wealth is a goal for most of us, but it is especially important for women in the workplace.

Women who are still working and about to retire are far more afraid than their male counterparts when it comes to paying for medical expenses, child rearing, or support for older family members.

While employers have gotten better at developing programs to help their employees make better financial decisions, participation in such programs remains low: around 31%, according to performance experts.

Low participation in employee programs is one of the reasons women continue to feel stressed about money, debt and retirement issues more than men. Another reason is that the average woman by age 43 only has around $ 119,000 in investable wealth, compared to $ 196,000 for a man of the same age.

Women, especially divorced and widowed women, face a number of complex hurdles when it comes to preparing for retirement.

File photo from Unsplash, St. George News

For example, many women in the workforce experience an income trend with which they earn significantly less money than their male colleagues. Not only do women earn less money, but men also survive and have to plan more years with no income.

Because of this pay gap, women tend to contribute significantly less to their retirement accounts and savings. The income gap then leads to a lack of retirement income, which can lead to running out of money before they die.

Several factors influence the income gap, including the role of caregiver. Women often take on the role of caregiver, first as mothers and later as wives who have to look after their older parents, in-laws and spouses. They do this much more frequently than their male counterparts (over 60% of caregivers are women) and often during their prime years of earnings.

What does this mean for you or the women in your life?

According to experts, 50% of women who stay home to take care of their families have no retirement plans. This lack of planning means that they are even more dependent on social security.

Social security has several problems. One of these is that the current social security configuration often penalizes double-income earners.

Stock image of a person who counts money | Photo by Pixabay, St. George News

Policy makers faced with a crisis strive to find solutions to this problem, e.g. B. Adjusting current spouse benefits and recognizing the time they spend as caregivers. There is even talk of creating a universal savings tool that will allow more women to save for retirement, whether their employers offer 401 (k) or other plans, or whether they offer paid family leave for caregivers.

But all of these changes take time. The COVID-19 pandemic is forcing Americans to realize the importance of having multiple sources of income in the short and long term.

The pandemic has shed light on the fragility of our pension system and the speed with which things are changing. It is important for women to start saving and protecting fixed assets as early as possible.

Copyright © Lyle Boss, all rights reserved.

Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection educator, he has helped thousands of seniors manage their financial retirement options. Its clients include government employees, teachers, doctors, farmers and executives, to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops in Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.

Comments are closed.