Retirement gender differences

 

You may have read that women are far more likely to face poverty in retirement than their male counterparts—but you may not realize just how big the disparity is.  In fact, women are 80% more likely to fall into poverty toward the end of their lives, compared to men, according to a 2016 study by the National Institute on Retirement Security.

In an attempt to explain how this came about, the study’s researchers noted that women are more likely than men to engage in part-time unemployment due to starting a family and staying at home with the kids, and at the other end of their lives, they have much higher rates of caregiving for elderly parents.  Men, on the other hand, can enjoy an uninterrupted work career, making them more likely to receive promotions and career opportunities.

Even if you take away this disadvantage, there’s another one.  During their working years, women earn, on average, 80 cents for every dollar their male colleagues earn—for the same jobs.

But…. Isn’t this changing as we become a more gender-aware society?  Apparently not.  If you look at the accompanying chart, you’ll see that women were catching up to male pay scales from 1979 until about 1993, at which point the gains seemed to totally stall out.  And women still make up 66% of all caregivers for elderly parents.  Even when men provide assistance, the Family Caregivers Council estimates that women spend as much as 50% more time than the men do in caregiving activities.

 

 

And 2015 data adds that 48% of women above age 75 live alone, compared with less than a quarter (22%) of men at a comparable age.  After caregiving for others, women are less likely to receive it for themselves.

Contributed by Bob Veres

Sources:

https://www.bls.gov/opub/reports/womens-earnings/2016/home.htm

https://www.caregiver.org/women-and-caregiving-facts-and-figures

https://www.forbes.com/sites/karastiles/2017/11/01/heres-how-the-gender-gap-applies-to-retirement/#6d84cafd6519

About Objectively Speaking

Tom Batterman, founder of Vigil Trust & Financial Advocacy and Financial Fiduciaries, LLC is in the business of representing the best financial interests of his clients. Having provided objective, fee-only financial management services for over two decades, he specializes in managing the investment and related financial affairs of individuals and mutual insurance companies who do not have the time, interest or expertise to manage such matters on their own. As an objective, unbiased professional who takes on a fiduciary responsibility to his clients, he guides clients to the financial decisions they would make themselves if they had years of training and experience and the time and expertise to fully research and understand all of their options. Founded in 2010 as an outgrowth of Vigil Trust & Financial Advocacy, Financial Fiduciaries, LLC is a financial management solution for individuals and mutual insurance companies who recognize they do not have the time, interest or expertise to properly attend to their financial matters on their own. While there are many financial “advisors”, most of them have investment products to sell and the “advice” they provide is geared toward getting their clients to engage in a purchase. As one of the rare subset of advisors known as “fiduciary advisors”, Financial Fiduciaries does not sell any investment product so its guidance is not compromised by conflicts of interest which plague ordinary advisors. Prior to his employment in the financial industry in financial advocacy and trust positions, he worked at a private law practice in the Wausau area in the areas of estate planning, tax, retirement planning, corporate organizations and real estate. He is a graduate of the University of Wisconsin-Madison and the UW-Madison Law School and has during his career held Series 7, 24 and 65 securities licenses. A longtime resident of the Wausau, Wisconsin Area, Tom is active in the community. He enjoys golf, curling, skiing, fishing, traveling and spending time with his family.
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