YOUNGSTOWN, Ohio (WKBN) – A recent study by the National Institute on Retirement Security (NIRS) shows more women are facing poverty during retirement, despite years of working a steady job.
Across all age groups, women have substantially less income in retirement than men. For women age 65 and older, the data indicate that their typical income is 25 percent lower than men. As men and women age, men’s income advantage widens to 44 percent by age 80 and older. Consequently, women were 80 percent more likely than men to be impoverished at age 65 and older, while women age 75 to 79 were three times more likely to fall below the poverty level as compared to their male counterparts.
There are more women in the workforce these days than ever before. And each year, more women graduate from college than men. But still, when it comes time to reap the benefits of working all those years, many women still end up in poverty.
Janelle Fumerola, president of the Youngstown Business and Professional Women’s Club, said women are more likely to take on the role of caring for children, spouses or elderly parents, which in turn leads to less chances of saving for retirement.
“We have less resources to work with. Just from the jobs that we take, the pay we are earning and then the fact that we are out of the work force caring for other family members and friends so much,” Fumerola said.
Over a forty year career, the pay gap between men and women can add up to more than $400,000.
Fumerola says now is the time for women to become educated on hot to take care of their own finances and plan for the future.
“Fifty percent of marriages end in divorce and about 17 percent of women are staying single. There’s a very good chance you are going to be taking care of your own finances by yourself or taking care of finances for that elderly parent you taking care of,” Fumerola said.
The simple fact that women tend to live longer than men also plays a huge role when it comes to poverty in later years.