Women and Retirement Readiness

Even though women outlive men, men far outpace women when it comes to saving for retirement. What's going on?

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.

  1. 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.
  2. Motherhood Penalty: On average, mothers in Massachusetts earn $23,000 less than fathers. (This is also known as the Fatherhood Bonus.)
  3. 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.
  4. 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.)
  5. 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.)
  6. Boomerang Kids: 37% of 18-34 year-olds in Massachusetts live with their parents, which adds to retirement strain.
  7. 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.
  8. 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.