4 Reasons Retired Women Need More Money Than Men — And What To Do About it
Written by
Jennifer Taylor
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Like many things, retirement isn’t the same for men and women. Specifically, retired women tend to need more money than men.
There’s a variety of reasons for this, which can be frustrating for women. Retirement is often thought of as time to enjoy your golden years, but it’s hard to do so without sufficient funding.
Walking away from a steady paycheck can be hard — or even impossible — for women who don’t have the savings to do so. You’re not alone if you feel like you’re behind on your retirement savings, but you can catch up.
The Gainbridge® digital platform offers financial solutions and products, which could be a smart way to help prepare, including annuities like the Gainbridge® ParityFlexTM — it was created by women for women and offers guaranteed returns of APY*.
Here’s a look at some reasons why retired women need more money than men, and more on how an annuity could help solve this problem.
1. Career Interruptions
Women are statistically more likely than men to take time away from the workforce to care for others, like children or aging parents. For example, only about one in five stay-at-home parents in the U.S. are dads, according to the Pew Research Center1.
In 2023, 66% of women identified as caregivers, compared with just 34% of men, according to an AARP New York Survey. Of current and former women caregivers, 35% said they didn’t work while providing care2.
Taking time away from the workforce can have a profound effect on women’s retirement savings. While they’re not working, they’re of course not earning a paycheck, but they’re also not able to take advantage of any employer-matched retirement savings benefits or pay into Social Security.
Even when they return to the workforce, being away may impact long-term career growth. This can cause them to have a lower earning potential, which may limit their retirement savings.
The Gainbridge® digital platform offers financial solutions and products, which could be a great way to bridge the gap, including the Gainbridge® ParityFlexTM annuity, created by women for women. Women are able to grow their retirement savings at a APY*, with peace of mind in knowing they’ll receive a paycheck for life.
2. The Gender Pay Gap
In 2022, women earned 82% as much as men on average, according to the Pew Research Center3. This isn’t anything new, as women earned 80% as much as men in 2002.
Not earning as much as men can impact women’s finances in both the present and future — like in retirement. For example, Fidelity® recommends putting 15% of your pretax income aside for retirement each year4.
However, working women might not be able to afford to save that much for retirement. Even if they can manage to do so, it won’t total as much as male co-workers earning more than them.
Social Security benefits are also based on average career earnings. In 2021, the average annual Social Security income received by women ages 65 years and up was $14,204, compared with $18,108 for men, according to the Social Security Administration5.
3. A Lower Likelihood of Saving for Retirement
Only 68% of women are saving for retirement, compared with 77% of men, according to Fidelity6. They also don’t feel as confident about their financial future, as just 42% of women believe they’re on track with retirement savings, compared to 52% of men.
There’s likely myriad reasons why women aren’t saving for retirement, including those noted above, like the gender pay gap and career interruptions. No matter the cause, many women feel they’re not on track with their retirement savings.
The Gainbridge® digital platform offers financial solutions and products which can be a smart choice for women to catch up on their retirement savings, including the Gainbridge® ParityFlexTM annuity, which pays a guaranteed rate of APY* — more than the national average rate of a savings account. And unlike investing in the stock market, annuity investments are shielded from market volatility. Learn more here.
4. Longer Life Expectancy
There’s no way to know how many years of retirement you’ll get to enjoy. However, women are more likely to live longer than men.
As of 2021, life expectancy for females was 79.3 years, compared with 73.5 years for males, according to the Centers for Disease Control and Prevention. This means women need more money saved to uphold their standard of living for the rest of their lives7.
Investing in a Gainbridge® ParityFlexTM annuity can be a wise choice for women, because it offers a paycheck that never runs out. Even if the account balance goes to zero — assuming the account value hasn’t reached zero due excess withdrawals — customers will still collect a paycheck.
The Bottom Line
The ParityFlexTM annuity, available on the Gainbridge® digital platform, is a way for women to take control of their financial future and bring a sense of security to their golden years. This multi-year guaranteed annuity offers the ability to earn competitive rates, while protecting your assets.
It’s easy to get started earning APY* with the ParityFlexTM annuity — an annuity created by women for women. See how much you could earn for life.
**Annual Percentage Yield (APY) rates subject to change at any time, and the rate mentioned may no longer be current. Please visit gainbridge.io/parityflex for current rates, full product disclosures and disclaimer, and other important information. All guarantees are based on the claims-paying ability of the issuing insurance company. ParityFlex™, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company, Zionsville, Indiana.
1 Almost 1 in 5 Stay-at-Home Parents in the U.S. Are Dads
2 When It Comes to Family Caregiving, Women Bear the Burden in New York: AARP NY Report
3 Gender Pay Gap in U.S. Hasn’t Changed Much in Two Decades
4 How Much Should I Contribute to My 401(k)?
5 Fact Sheet: Social Security Is Important to Women
6 Fidelity Investments® Study: Women Tapping Into Their Financial Superpowers
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