INSPIRE...INFLUENCE...IMPACT!

CWIMA Blog

The latest from CWIMA and featured sources
8
Mar

Women Are 80% More Likely Than Men To Fall Into Poverty During Retirement

Women are more likely to struggle financially through retirement than men are, according to new research released by the National Institute on Retirement Security (NIRS).

Women in the U.S. are 80% more likely to fall into poverty during retirement than American men are, Business Insider and RT report. The trend seems to be based on something that many Americans believe has been solved: the gender gap in the workplace.

Although many Americans find it hard to believe that American women only earn around 80 cents to every $1 that American men earn, it’s becoming obvious that this pay gap does exist and it’s showing up in the form of retirement savings. The recent data from NIRS shows that a woman earning $50,000 annually needs to save $1,000 more per year than a man — earning $50,000 annually too — needs to save.

There are, of course, several factors at play here. Women have a longer life expectancy than men do, so their retirement savings need to be slightly higher. Women are also more likely to face expensive health problems. As RT reported, women are more likely to suffer from depression and anxiety than men in the U.S. — ironically because of the wage gap.

This wage gap is at the core of the problem, NIRS states.

“According to a 2007 study, full-time female workers made just 76.2% of their male counterparts’ wages — that means less money for savings,” said policy analyst and research author Ilana Boivie. “Women still earn less, have less to save, and are less likely to have workplace retirement plans.”

For men and women ages 65 and older, the average woman’s income is 25% less than the income of the average man, of the same age, in the U.S. When both groups reach 80 years of age, the average male has an income 44% higher than the average female of the same age.

Women ages 75 to 79 are three times as likely to live poverty than men ages 75 to 79, and widowed women are twice as likely to live in poverty than widowed men.

The issue at hand certainly isn’t an easy one to solve. American adults from all demographics are having more trouble saving up for retirement; nearly 50% of Baby Boomers say that they won’t be able to retire until at least age 66, and 10% say they’ll probably never be able to retire at all.

Leave a Reply