Retirement is a major financial milestone that many Americans are unprepared for, especially when it comes to the largest cohort of baby boomers reaching age 65 between now and 2030. Women, who make up 52% of this “peak 65” group, are particularly at risk for struggling in retirement compared to their male counterparts. According to a new economic impact study released by the Alliance for Lifetime Income, a Washington, D.C.-based nonprofit focused on retirement education, there is a persistent disparity between the assets of men and women as they enter retirement age.
The research shows that from now until 2030, 30.4 million Americans are expected to turn 65, with a majority of baby boomers not being financially prepared for retirement. With employer pensions becoming less common, individuals are increasingly dependent on personal savings and Social Security. However, women, along with people who are Black, Hispanic, or without college degrees, are at a greater economic disadvantage in retirement.
Peak boomers who are best poised to handle retirement financially are men, white individuals, and those with college degrees. These groups are more likely to have multiple types of retirement accounts and larger balances. The median retirement savings for peak boomers is $225,000, with a significant gap between men and women, where men have a median savings of $269,000 compared to just $185,000 for women.
To address the financial challenges that women face in retirement, it’s important to understand the root causes of the disparities. Factors such as the gender pay gap, longer life expectancy for women, lower risk tolerance, and caregiving responsibilities all contribute to women’s financial insecurity in retirement. Employers and the financial industry can play a crucial role in helping women better prepare for retirement by offering expert guidance, support, and resources tailored to their needs.
At Extreme Investor Network, we understand the importance of personalized financial planning and education to help women and other marginalized groups secure their financial future in retirement. Our experts provide valuable insights and strategies to empower individuals to take control of their finances, build wealth, and achieve a comfortable retirement. Stay tuned for more exclusive content and resources tailored to your financial needs and goals.
