Women twice as likely as men to retire in poverty
The median income for elderly women is $11,600 less per year than it is for senior men.
This post comes from Krystal Steinmetz at partner site Money Talks News.
If you think gender inequality ends at the workplace, you're wrong. The financial disparity between men and women extends into retirement.
According to CNN Money, women are nearly twice as likely as men to live below the poverty line during retirement. In fact, women 65 years and older have a median income of about $16,000 a year, while their male counterparts get about $27,600. Single and minority women tend to struggle the most, CNN Money said.
There are a number of reasons that women have less money in the “golden years” of retirement. According to Reuters:
Women have lower lifetime income based on less time in the workforce," says David Littell, who directs a program focused on retirement income at the American College in Bryn Mawr, Pa. "As a result, they have less in savings, lower Social Security benefits – and they live longer than men. Those things don't go well together.
CNN Money provided some detail on the factors that impact women’s nest eggs in retirement.
Lower lifetime earnings. On average, a full-time working woman earns just 77 cents to every dollar a man is paid, CNN Money said. This disparity in income impacts a woman’s ability to save for retirement, as well as the amount of Social Security benefits she is able to accrue. Females also make up about two-thirds of all part-time employees – jobs that rarely come with workplace retirement plans.
Less time in the workforce. The AARP Public Policy Institute says that over the course of their careers, women work about 12 years less than their male counterparts. This is often because women take some time off work to raise children or care for an aging family member.
Outdated Social Security system. The Social Security system was initially designed to provide support for married couples -- generally a man who brought home the bacon and a nonworking wife who was entitled to Social Security spousal benefits at retirement age. Fewer women get that benefit now, and their own Social Security payments based on their work history are lower.
Does it surprise you that women are twice as likely to retire in poverty than men? Share your thoughts below.
More from Money Talks News
|Tags:||MoneyTalks Newsretirementretirement communitiesretirement planretirement planningretirement savings|
1. They are princesses - check the volumes of women at Starbucks from 11 am to 4 pm
2. They expected their husbands to pay for them, so they never got educated
3. They use their children as shields to avoid work - and society gets taxed to pay for them
4. They can't get fired for being a bad housewife - even if they do nothing and stink at it
3. Their greed stresses and kills off their husbands who die young and now no one can pay for them.
Seriously they just have to marry money and then take half of it in a community property settlement!
They have the government supported baby insurance program.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Homeowners associations ban them and environmentalists love them. All that aside, though, a clothesline saves you money.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'