Even though women outlive men, men far outpace women when it comes to saving for retirement.
Here’s what happens to many women along the way.
- Wage Gap: Women ultimately contribute less to retirement because of the wage gap. On average, women in Massachusetts earn 83 cents for ever 1 dollar earned by white, non-Hispanic men.
- Motherhood Penalty: On average, mothers in Massachusetts earn $23,000 less than fathers. (This is also known as the Fatherhood Bonus.)
- Student Loan Payoff Delay: The average college graduate in Massachusetts holds $23,391 in student debt. It takes women longer to pay off this debt due to the wage gap.
- Ten Years Married: Women married for at least 10 years may be eligible for their spouse’s social security benefits-even after divorce or death. (Refer to federal laws for details about same sex marriages.)
- Divorce: Sometimes separating from a partner’s nest egg can be shocking, especially compared to what was expected for your family’s retirement income. (Research the Qualified Domestic Relations Order (QDRO) if you need a plan.)
- Boomerang Kids: 37% of 18-34 year-olds in Massachusetts live with their parents, which adds to retirement strain.
- Lead Caregiving: Women are more likely to become the lead caregiver and may be out of the workforce for 12 years on average, halting workplace and/or social security retirement contributions.
- The Difference: Over a 40-year career, women in Massachusetts will have a lifetime wage gap of $446,080 (or need to work 8.8 years longer to catch up), which contributes to 34% less in retirement savings (national average). (Calculate your lifetime wage gap at EqualPayMA.com/calculator.)
For more information, head to EqualPayMA.com.
