How employers can help close the gap

Employers have a vital part to play in bridging the gender retirement gap by creating policies that bolster women’s long-term financial security. Here’s how employers can make a real impact today:

Equal pay for equal work: The most direct way to shrink the gender retirement gap? Close the pay gap. Conduct regular pay equity audits, be transparent about salary ranges and ensure equal pay for equal work. When women earn what they deserve, their retirement savings naturally follow suit.
Encourage retirement plan contribution: Women are less likely to participate in employer-sponsored retirement plans, often due to lower earnings or part-time employment. Employers can boost participation by offering automatic enrollment in 401(k) plans, increasing default contribution rates and providing more generous matching contributions for lower-earning employees.
Be flexible: With caregiving responsibilities often falling more heavily on women, providing options or remote work or part-time positions can help them maintain employment and continue contributing to their retirement. Additionally, paid time off can alleviate some of the pressure without jeopardizing their financial future.
Educate women about finances: Financial literacy is power. Offer financial wellness programs, investment coaching, and tools that help women take control of their financial futures. These workshops can empower women to make savvy retirement savings choices that can be life changing.

All that to say, the gender retirement gap isn’t going to disappear overnight, but by tackling pay disparities, boosting retirement savings and fostering a culture of financial empowerment, employers can make a lasting difference now. For brokers guiding companies on benefits strategies, advocating for these policies is not only just good practice, but it’s also a chance to help create a more equitable environment, ensuring that all employees are on track for a secure future.

Instant Insights /

Let’s close the gender retirement gap: How employers can help

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