The ERISA Advisory Board to the Employee Benefits Security Administration (part of the U.S. Department of Labor) recently released its "Report on Disparities for Women and Minorities in Retirement Savings." This report describes how women are at greater risk for an insecure retirement than men, and how their retirement savings from employer-sponsored retirement plans are generally inadequate to meet their needs in retirement.
The ERISA Advisory Board to the Employee Benefits Security Administration (part of the U.S. Department of Labor) recently released its "Report on Disparities for Women and Minorities in Retirement Savings." This report describes how women are at greater risk for an insecure retirement than men, and how their retirement savings from employer-sponsored retirement plans are generally inadequate to meet their needs in retirement. Specifically, the report notes, "For about four out of ten women alone, Social Security is their only source of retirement income." The report also points to some of the factors that contribute to women's lower retirement savings, including that women "[w]ho work full time earn about 78 cents for every dollar men earn – while Black women earn 64 cents and Hispanic women 52 cents; [w]omen have fewer years in the workforce and are more than twice as likely to work in part-time jobs; [and w]omen average 12 years out of the workforce to provide care to their families – losing pay increase opportunities, and retirement savings opportunities.” In addition, the report noted women's longer lifespans, which makes retirement savings even more critical. Further, the report describes how divorce can negatively impact women's retirement security.
The Advisory Board encouraged the Department of Labor to take a number of steps, including greater outreach and education, as well as encouraging employers to offer more generous retirement savings benefits to its employees. But let's take a step back. To increase women's retirement security, it's going to take more than education: it's going to take legislative action to improve employer-based savings plans and Social Security. Let's not even think about cutting back on Social Security when so many women rely on those benefits in retirement.