The income gender gap stretches well into retirement.
At a time when work is supposed to wind down, many women may find themselves incapable of transitioning to an easier lifestyle. For starters, they simply don’t have enough money saved, a new Prudential report found, but they’re also more likely to care for a loved one or child in their older years, they don’t receive as much in government benefits (especially if they had to leave the workforce when they were younger) and they live longer, so they have to stretch the money they do have.
On top of all that, women are taking on more debt — student loan debt, mortgage debt or debt after a divorce or becoming a widow, said Janice Co, vice president and head of marketing and strategy at Prudential, and the author of the report, “Closing the Retirement Income Gender Gap.” Prudential did an analysis of its record-kept accounts for the report, as well as looked at external data from sources such as the Bureau of Labor Statistics and past surveys the company had done.
“Women are in this perfect storm,” Co said. “Women are time-starved. They are doing more tasks at home, they’ve got less time to even plan for retirement or to learn about savings.”
Even though women need to save more money…