July 8, 2022

Many people recognize the potential impacts of gender gaps on retirement savings. Unfortunately, retirement readiness could become problematic for many women approaching retirement age.

Women must be prepared to think about how they can adapt their retirement plans by working with experienced financial professionals. All too often, women face setbacks when they hit retirement age. This can be especially challenging if a spouse experiences medical issues. Just one partner needing a stay in a nursing home or an outside nurse to come in could decimate the retirement savings that the spouses considered to be for both parties.

The gender pay gap has closed some in recent years, but it’s cumulative impacts are still felt strongly by older women. Having a financial professional who is committed to helping you adapt and handle these challenges is important.

Two recent studies from the TIAA Institute found that in 2020 male workers contributed a median of $8,271 to their workplace retirement plan, compared with only $5,994 for women. In 2022, that’s a 27% gap between men and women. This is an improvement from the 34% difference in 2012, but the pay gap continues to impact women today and for the remainder of their lives.

Stepping out of the workforce, contributing lower amounts, and earning lower wages can all make it difficult for women to catch up with retirement. Considering the possible expenses associated with long-term care and the need to support a retirement for longer years due to increased longevity, it is extremely important for women to have access to knowledgeable financial advisors. A financial advisor can help you adapt and adjust your retirement plan as necessary. If you have not yet partnered with a holistic financial planning and advising firm, now is the perfect time to get all of your questions answered.