Gender Gap Found in Retirement Income Levels

By Elsie Dudukovich0 Comments

CNN Money’s article “Why Many Retired Women Live in Poverty” brings up a concerning statistic.  According to the article, senior women tend to have $11,000 less to live on than men in their retirement.  With the United States poverty line at $11,670 for a single person and $15,730 for a two-person household, this difference can make for challenging circumstances for women living on $16,040 annually, as the annual Congressional analysis of Census data uncovered.  While you might be just getting by, there is a narrower margin for dealing with emergencies or other life events that can turn costly quickly.  The same can be said for men aged 65 and older, who typically live on an annual amount of $27,612. 

There are a number of factors potentially responsible for this income difference.  Number of years in the workplace, education levels achieved, type of work sought, and the average pay for that work all contribute to the current income differences between men and women in their golden, or not so golden, years.  It is a multifaceted matter, moving beyond simplistic assumptions; except to highlight the overall concern that both genders tend to not save enough for retirement.

When it comes to women focusing on managing funds for retirement, it is vital they realize it is possible for them to expect living an average of 20 more years once they turn 65.  For men, the life expectancy gap is only two years less now and running out of savings becomes a real concern for all adults.

Reducing expenses you experience in middle age, such as payments for a mortgage, car loan, credit debt, is a goal for serious consideration in order to make the most of total retirement income, but you should also be aware of the possibility of experiencing greater health care needs - which could offset any gains made by reducing expenses.   Working to maximize retirement savings and investment growth is vital.

Equity Trust provides a wide range of tools to help our clients in a variety of ways.  From calculators to help people evaluate their future financial needs to materials on investing, there is education to help you take control of your own retirement.  Check out these informative wealth building tools and offerings to help jump start or sustain your financial goals.