Women Face Income Shortfall In Retirement

Written and edited by Harry Rubins for his clients and friends.
Not intended as legal or tax advice.
Obtain professional advice before taking action on this information.

Women face daunting financial challenges, including the very real possibility that they may not accumulate enough money to live comfortably in retirement. In fact, women who are now age 62 have worked an average of 50% fewer years of paid work and earned 33% lower salary than men their age. This entitles them to only 25% of the retirement benefits their male counterparts receive.

Women In Retirement

• A woman's average monthly social Security benefit is $519, a man's is $680
• The median pension income for women over age 65 is $269 a month, compared to $591 for men
• Almost 75% of elderly persons living below the poverty level are women

* Source: Select Committee on Aging, House of Representatives, September 1992

Young women entering the work force today will generally work as long as their male counterparts. But until the wage disparity between the sexes is equalize, women will still have to "pay" attention to their saving plans for retirement.