SVP Barb Van Zomeren recently contributed a byline to Employee Benefit News in which she discusses how advisors can help women overcome retirement savings hurdles. According to EBRI, the average retirement savings shortfall for single women is nearly twice that of single men. The Social Security Administration reported in 2019 that unmarried women rely on Social Security for 45% of their total income, compared to 32% for unmarried men and 27% for couples. Van Zomeren states that the main reasons for these discrepancies are that women earn 18.6% less than men on average, live 2.4 years longer, have more healthcare costs, and are more likely to take career breaks to focus on family care.
Advisors can help their female clients by encouraging them to save in an IRA if eligible, contributing to an HSA for future medical costs, contributing enough to retirement plans to receive a full employer match, and learning more about investing.