In some ways, it just doesn’t pay to be a woman — and Merrill Lynch and Age Wave have attempted to add them up.
In a new report, “Women and Financial Wellness: Beyond the Bottom Line,” released by the financial company and research group, it’s estimated that by retirement age women accumulate as much as $1,055,000 less than men, due to pay disparities and workplace interruptions. That can be even more meaningful than it sounds, given women’s longer life spans.
The report makes use of a national survey that included 2,638 women and 1,069 men, and 44 percent of the women interviewed worried they would run out of money by age 80, even though 64 percent of them said they would like to live to 100.
“Women have come a long way both personally and professionally, but when it comes to their finances, there is still a trail left to blaze,” Lorna Sabbia, head of retirement and personal wealth solutions for Bank of America Merrill Lynch, said in a press release.
In addition to the disadvantage they may face from different pay levels, the report notes that woman frequently take breaks from their careers for child-rearing or other family caregiving responsibilities, which end up affecting the amount of money they have late in life. Additionally, they have an average of $195,000 more in health costs in retirement than does the average man, according to the report.
The survey found that 41 percent of women regretted not investing more for their retirement, with lack of knowledge and confidence being the primary barriers to having done so.
Gary Rotstein: grotstein@post-gazette.com or 412-263-1255.
First Published: April 19, 2018, 8:26 p.m.
