Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Retirement Investing

Many Women Face Tough Retirement, Study Finds

Your article was successfully shared with the contacts you provided.

A new study shows women in general are looking at a far lower living standard in retirement than are men.[@@]

The median salary for women working full-time in 2003 was $30,734, vs. $40,668 for men. That works out to a typical woman earning roughly $523,000 less than the typical man over a lifetime, according to the study by Americans for Secure Retirement, Washington.

Coupled with the fact women spend less time working than men, they have a smaller amount of accumulated Social Security and retirement plan benefits, the ASR report points out.

The median income of women aged 65 to 74 was $12,143, compared to $23,161 for men. In 2002, women aged 65 and older had a median asset income of only $1,028 a year, or around $86 per month.

The percentage of women aged 75 to 84 living in poverty in 2003 was 13.5%, compared with 7.4% for men, the study notes.

Just 44% of working women participated in a pension plan in 2002. The average Social Security payment for retired women in 2002 was $774 per month, vs. $1,006 for men, according to ASR.

Social Security, which replaces only about 42% of an average retiree’s pre-retirement income, is the only source of income for 25% of unmarried women, the group notes.

Results of the ASR study were released by Congresswoman Stephanie Tubbs Jones, D-Ohio, who cited its results to back up her cosponsorship of legislation advancing annuities as a source of lifetime income for retirees.

The legislation, the Retirement Security for Life Act (H.R. 819 and S. 381) is also sponsored by Reps. Nancy Johnson, R-Conn.; Phil English, R-Pa.; and John Tanner, D-Tenn.; as well as Sens. Gordon Smith, R-Ore.; Kent Conrad, D-N.D.; Olympia Snowe, R-Maine; and Hillary Rodham Clinton, D-N.Y.

Americans for Secure Retirement is a coalition of trade groups and other organizations, including the American Council of Life Insurers, the National Association of Insurance and Financial Advisors and the National Association of Variable Annuities.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.