Women will retire with less money than their male counterparts because men tend to contribute higher percentages of their pay into an employer-sponsored retirement account, with the exception of women ages 50 to 64, according to a new ING Retirement Research Institute report titled “What about Women and Retirement?”
Over time, because women historically make less money than men, these percentage/contribution gaps can lead to significantly lower lifetime retirement savings for women, who will likely need more in savings to account for longer lifespans in retirement.
ING found that women face more barriers to saving for retirement, including insufficient income or a high level of debt. Women are more likely to report that they didn’t know what their retirement savings options were.
Divorced and widowed women are more likely to cite insufficient income or debt as their main barriers to saving for retirement. They also are less likely to report uncertainty about their retirement savings options.