A recent white paper has revealed that women are very poorly prepared for retirement. The reason is the higher number of challenges faced by women. Many women work only part time and some are not even offered a retirement plan. The women who are offered a retirement benefits plan are often saving less money in the plan than they should for a secure retirement.
Why Women Don’t Have Access to a Retirement Benefits Plan
The white paper was released by a leading Washington-D.C.-based popular advocacy organization for America’s financial services industry named Financial Services Roundtable. The white paper revealed that about 27 percent women work part time because they need to take care of the kids or any other family members. Part-time workers are often not offered a retirement benefits plan. Moreover, the earnings of part-time workers are so low that even if they are offered a retirement plan, they can hardly contribute to it.
The Workplace Earning Differences
The white paper has also highlighted the fact that women consist of 47 percent of the labor force in America. Women also have nearly equal education to men. About 29.6 percent women hold a bachelor’s degree and this percentage is 30.4 percent for men. But still, women’s weekly earnings for salaries and full-time wages are just 81 percent of what men make.
The Bad News
About half of the millennials who were surveyed accepted that they don’t even have a retirement investment account while the fact is that the millennials need more money saved towards the retirement as compared to baby boomers as the cost of living and healthcare expenses are constantly rising.
Women Need more Retirement benefits than Men
The white paper also shared the fact that women need more money stashed for the retirement than the men because they have a longer average lifespan. The average lifespan for men is 84 years while its 87 years for women. It is also a strong possibility that women will need to spend more money over time towards their health care.
The Participation
The white paper has also found out that women who are saving towards a retirement benefits plan are not doing enough. About 62 percent of women were offered a 401(k) or a similar plan. Just 76 percent participated in the plans and the rate of saving they chose stands at 7 percent of their salary.
