Today’s women are more educated and have more significant job opportunities compared to previous generations. Despite more women in the workforce than ever before, women still experience considerable pay disparity compared to their male counterparts, creating a deficit in wages and retirement savings. Even though women participate in employer retirement savings plans, many still struggle financially while in retirement, primarily due to their inability to save as equally as their male counterparts. Why does a gender gap in retirement savings exist?
According to The World Economic Forum’s 2018 Global Gender Gap Report, it will take 202 years to close the gender pay and retirement gap entirely!
However, progress is happening globally to align social norms, employers, and governments to close the gender retirement gap. What is working well?
-Source: International Labour Organization
There are critical components to retirement readiness that can help close the retirement savings gap, regardless of time away from work to raise children or care for family members. These are foundational for financial independence:
Additionally, women should develop their financial plan that reflects time off from work, saving, and not including a partner. Having a single view will help prepare them for the future, regardless of what happens. If you are a woman in need of a financial plan reflective of your life, contact us to set up a meeting.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
LPL Tracking # 1-05136143