Women And Retirement

Because women have not always been a large part of the workforce, women and retirement have not been considered as something connected. However, the fact that over 60 million wage and salaried women make up a large portion of the work environment of the United States, it is extremely important that women start thinking harder about their retirement options. Let’s take a look at some statistics that are a warning flag, letting the world know that something needs to be done to assist in better retirement planning for women.

Several things affect the rate of women’s retirement plan enrollment. First of all, many women work only part time, as the second source of income in a couple or family, meaning they are not eligible for benefits from their employers. Also, many women put their careers on hold entirely to take care of young children, leaving their 401K plans unvested or having to start them over entirely when and if they reenter the workforce. This also adds up to fewer years of contribution. All of these work interruptions also lead to lower pay, which makes it more difficult to take money out of the paycheck and put it away for retirement.

Let’s look at some even scarier statistics regarding retirement and women. First of all, the average retirement age in the United States is 65, and while many people will maintain a part time job to supplement the retirement income, the general idea is for the retirement funds to be sufficient to last for the rest of the person’s life. Now, take into account that a man age 65 can expect to live an average of 15 more years on the funds from retirement. Women, on the other hand, have a longer life expectancy and on average will have another 20 years left in their lifespan during which they will need a source of income. Couple the longer life with fewer funds, and you can see the crisis situation begin to unfold.

Because women tend to invest more cautiously and conservatively than men, they often receive a lower rate of return when they do opt for some sort of investment. Because of these issues, new options are being offered for retirement for professional women, attempting to solve the problem before it gets out of hand. Private, non-employer-sponsored options with low risk and greater return are offered for women, and retirement scares are being put to risk. If you are a woman seeking the best way to secure your future, look into these new private fund options and start saving today.