We all know that there is a gender pay gap in the workforce, but a gender gap in retirement? According to the Washington post article below, “eighty-three percent of U.S. women are not saving enough to meet their needs in retirement, vs. 74 percent of men.” Women often start with a lower pay grade, which equates to saving less money, even when they save the same percentage for retirement as men. Rodney Brooks has suggestions for steps employers can take to close the retirement savings gap:
Employers can help women close the retirement gap
June 27, 2016
Five of six women are not saving enough for retirement, according to the latest research from Aon Hewitt, a benefits consultant firm.
But employers can and should take steps to help women close the gap, according to Aon Hewitt.
While women and men are participating in employer-sponsored 401(k) plans at the same rate, women are saving less. Eighty-three percent of U.S. women are not saving enough to meet their needs in retirement, vs. 74 percent of men.
“Women, in some cases, are hit repeatedly throughout their career or dinged throughout their career in saving for retirement,” says Virginia Maguire, director of retirement products and solutions at Aon Hewitt. “They start at a lower salary scale. To save the same percentage (as men) would be a smaller dollar amount a month. Often women take a break in service, so they have a smaller (retirement) balance.”