Prepare not to be surprised. The annual retirement saving and spending survey conducted by the fund company T. Rowe Price found that U.S. women, in aggregate, lag in terms of income and retirement savings compared with their male counterparts. Baby boomer women were the worst off, because so many were stay-at-home mothers or who interrupted their careers to have and take care of children. You might think that this wouldn’t matter, because staying at home enhanced the career opportunities of the husband, but the survey found that for people retired 11 or more years, 45% of the women were divorced or widowed, vs. just 17% of the men.
Judith Ward, senior financial planner for T. Rowe Price, offers some recommendations. One is making Social Security decisions that will maximize the benefit for a surviving spouse. Another is to get help from a professional to assess your situation and options.
What about millennial women? Ward worries that many younger women have gone into jobs that pay a decent wage but might have limited upside potential. Social services employs women by a 3-1 ratio. A career change might be recommended in their future.
Overall, when asked: how much should you be saving for retirement?—more women than men said they did not know, and women tended to offer a lower percentage of their income than men—perhaps due to lower expectations in retirement.
Provided by Storey & Associates, a Registered Investment Advisor located at 1360 South Main Street, North Canton, Ohio offering Financial Planning and Investment Management Services. Content written by Bob Veres. For more information, please contact us at (330) 526-8944 or firstname.lastname@example.org.