Insights regarding challenges women face while trying to meet retirement savings goals and what they can do about it.
Women differ from men in countless ways, including how they plan for retirement.
GOBankingRates interviewed Regina McCann Hess, CFP, certified divorce financial analyst and author of Super Woman Wealth: How To Become Your Own Financial Hero, to get her take on women and their retirement planning goals.
Hess, who has more than two decades of financial planning experience, has dedicated her career to empowering professional women to take an active role in their finances — nurturing their money, protecting their wealth and taking control of their financial future. She understands women’s unique relationships with money and routinely offers practical advice to women on becoming more comfortable with financial planning and management.
Here are her insights regarding challenges women face while trying to meet retirement savings goals and what they can do about it.
Challenges Women Face Meeting Retirement Savings Goals
From caring for others to not making themselves a priority, here are some of the main challenges women face when trying to meet their retirement savings goals.
Caregiving Responsibilities
“Most women lose several years of contributing to their retirement plans due to taking time off work to care for their families,” said Hess. “On average, women lose 12 years of work — and contributions to their retirement plans — while stepping away from work for caregiving responsibilities.”
Hess said women taking time off isn’t only time to care for their children; they also take time off to care for older family members experiencing health issues.
“This has a direct impact on their retirement goals,” said Hess. “Not only do they miss making retirement plan contributions, [but they also] miss promotions and raises that could help them get closer to their goals.”
Gender Wage Gap
Another challenge is the difference in the amount of money women make versus men. The Center for American Progress found that in 2021, women who worked full-time typically earned over $9,000 less per year than their male counterparts.
Hess pointed out that in general, women still make only $0.82 for every $1 their male counterparts do, which, she said, puts women behind from the get-go.
“The even sadder part is that this amount has essentially not changed in years,” Hess said. “Making less means that women have less to use for their budgetary needs. When faced with paying their rent or saving for retirement, their day-to-day needs must come first.”
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