Here’s what you can do to address them.
Today, women have more choices than before – from career and leadership opportunities to raising a family or pursuing passions. But, balancing daily life with planning for the future can be challenging, especially when the deck is slightly stacked against us.
Here are three retirement challenges facing women investors, and ways to address them.
1. Impact of pay gap and time away from work. It's important for everyone to invest early and often, but for women the need is even more so. This is due to two main factors: the pay gap and time spent away from the workforce. The pay gap still stands at 20 percent in 2017 according to the Institute for Women's Policy Research and will likely persist for some time. What's more, the pay gap is often magnified as women are pulled away from work to care for loved ones – be it children, aging parents, an ill spouse or grandkids.
Time away from work impacts earnings not just in real time, but throughout one's career. The Center for American Progress found that each year out of work can cost a family more than three times the parent's annual salary in lifetime income. Additionally, time out of the workforce often means giving up important retirement benefits like access to a 401(k) and the associated employer match.
money.usnews.com
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