According to recent data from the National Council on Aging and the Women's Institute for a Secure Retirement, nearly half of women ages 25 and older lack access to a tax-advantaged, employer-sponsored retirement plan.
The top reported financial concerns among women, alongside insufficient retirement savings, include housing costs, Social Security, and Medicare cuts. The lack of access to retirement plan benefits doesn’t paint a complete picture of the problem. Among those women who are eligible for workplace retirement plans, average account balances lag behind those of men by a startling 50%, according to Bank of America's Financial Life Benefits Impact Report. This disparity can create a chain of negative financial consequences for both female workers and organizations.
The impacts of the shortfall in women’s retirement savings on the overall gender wealth gap are far-reaching, exacerbating their longer-term financial insecurity. Due to their longer average lifespan, women often require larger nest eggs for retirement than men. Therefore, a lack of adequate savings can often translate to a lower quality of life and can also delay their exit from the workforce due to economic necessity.
Implementing measures to address the gender gap in retirement savings can lead to many tangible benefits for organizations, including an increase in productivity and staff retention rates, maintaining a competitive edge in talent acquisition, and more effective and cost-efficient succession planning.
Source:
November: TCGIAS.2023.27
This communication is for informational purposes only and does not purport to be a complete statement of all material facts related to any company, industry or security mentioned. The information provided while not guaranteed to accuracy or completeness has been obtained from sources believed to be reliable. The opinions expressed reflect our judgment now and are subject to change without notice and may or may not be updated.
Hyperlink Disclosure
By selecting the links identified in this publication, you may be redirected to third-party websites, over which The Capital Group Investment Advisory Services, LLC (TCGIAS) has no control. TCGIAS makes no warranties as to the content or accessibility of the third-party website and assumes no liability for errors or reporting inaccuracies. TCGIAS neither approves nor endorses the statements made by the third-party on their website. Third-party website content is subject to change without notice and may or may not be updated. It is the responsibility of the viewer/reader to ensure third-party sites accessed are virus-free and TCGIAS accepts no responsibility for any loss or damage arising in any way from the hyperlink or third-party website.