The challenges that women face in retirement are many and should only motivate our mothers, sisters and daughters to plan early and plan smart. In fact, the U.S. Department of Labor reports that:
· Of the 61 million wage-earning and salaried women in the US between the ages of 21 and 64, only about 46 percent participate in a retirement plan in any given year — much lower than the participation rate for men.
·Women are more likely than men to work in part-time jobs, and part-timers are less often eligible to participate in workplace retirement plans.
· Women are more likely to interrupt their careers to care for their families, giving them less time to participate in workplace retirement plans and less income to apply to future Social Security benefits.
·The average woman who retires at age 65 is likely to live 19 more years — approximately three years longer than the average man.
With the cost of retirement skyrocketing, these statistics should encourage women to check up on their 401(k) or other savings products and even investigate alternative investment vehicles. Is your mother/sister/daughter financially prepared for this period in your life? How about your client’s mothers, sisters and daughters? What do you suggest your female customers do to be prepared for costs throughout retirement? Please leave your thoughts below.