Many women find it an uphill battle to save for retirement.
Across all age groups, women have considerably less income in retirement than men, according to a report from the National Institute on Retirement Security. For women age 65 and older, their income is typically 25 percent lower than that of men. As men and women age, the gap widens to 44 percent by age 80.
As a result, women were 80 percent more likely than men to be impoverished at age 65 and older, while women age 75 to 79 were three times more likely to fall below the poverty level than men the same age.
To understand why, consider this: Working women, on average, earn less than their male counterparts, so they have less money to save for retirement. Their median wage is 80 percent of men’s, according to the Economic Policy Institute, a nonprofit, nonpartisan group.
Many women take time off to raise children or care for an aging relative, which gives them fewer years to contribute to a retirement plan. Moreover, because employers will often match — up to a set amount — the money an employee sets aside in a workplace retirement account, like a 401(k) or 403(b), those matching dollars are sacrificed.
- New York Times