The following is an excerpt from Lauren Lyons Cole | April 1, 2016 | ibtimes.com |
If you’re a woman, retirement may be even further away than you thought.
The fastest-growing demographic of workers in the U.S. right now isn’t recent college graduates but women over 65. By 2024, twice as many women over 65 will be working, compared with 30 years prior, according to projections from the Labor Department. For most, working longer isn't a choice; it's a necessity.
This drawn-out working life is not for lack of saving for retirement. Female employees are 14 percent more likely to participate in their employer’s retirement plan than their male colleagues, according to a recent report from Vanguard. Target date funds have leveled the investing landscape, making the composition of retirement portfolios increasingly similar for men and women.
Yet men end up with average account balances that are 50 percent greater than their female counterparts'. The wage gap is a major factor in this difference, but closing it alone won’t fix the problem of needing to work longer. Even among men, most retirement account balances fall short.
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