The Growing Retirement Savings Gap and its Disproportionate Effect on Women
The Retirement Savings Gap
Americans face a growing disparity between retirement goals and actual savings. In 2020, the target amount for retirement was $951,000, but the average savings stand at $88,400, further exacerbating the gap.
Impact on Women
Women are disproportionately affected by the retirement gap, with 28% saving less than $50,000 for retirement. Factors like the pay gap, part-time work, and longer lifespans contribute to women retiring with significantly lower savings.
Solutions to Bridge the Gap
Government measures for part-time workers, professional financial advice, and early retirement planning can help women improve their retirement outlook. Understanding investment strategies, compounding interest, and taking control of financial planning are crucial steps towards closing the retirement savings gap.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.