The Retirement Income Gap

BOSTON (CBS) - Yesterday we talked about the income gap. The income gap is a scary realty and I hope by the time my granddaughter is working her pay will be equal to her male co-workers. I once had those hopes for her aunt, my daughter, but it did not happen.

But more frightening to me is the retirement income gap that retirees face. Currently it is 44 cents for women for every $1 that men will collect. It's been well reported that more women than men encounter financial hardship during retirement.

I work at a local food pantry and many more elderly woman come thru the door than men needing assistance.

Women outlive men usually by six years on average, they are in and out of the job market raising children or caring for elders. Over 15% of middle aged women are sandwiched between those very jobs right now caring for children or grandchildren and elderly relatives. And many are helping to support adult children.

Women often don't stay in jobs long enough to be eligible for a pension. Currently 33% of female workers have pensions compared to 55% of men.

And when women are working they often put off participating in their employer's retirement plan because of the immediate needs of their family. Divorce and early widowhood also play into this lack of retirement savings. Average age of widowhood is 56 and the divorce rate is still 50%.

Certainly Social Security will be there for many women if they or their spouses have paid into the system, but Social Security was never meant to be your sole source of income in retirement. And with the average benefit for women currently at $1,100 a month that is barely enough to exist on. A man's average benefit is $312 more a month a woman's.

Women need to plan for more years in retirement and they need to be saving more for their retirement. A comfortable retirement should be their number one goal and they shouldn't have on blinders when it comes to reaching that goal.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

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