According to a recent survey by T. Rowe Price of 3,005 adults, women approaching retirement age have less than half the amount in their retirement savings as men. The same is true of younger generations. Women are saving less than men and, as a result, many are planning to work past retirement age.

One factor is the gender gap. Not only do women make a median of $27,000 less than men each year, but they also contribute less to their retirement plans. In fact, most contribute less than the recommended amount because they can’t afford to contribute more. Women don’t put as much in supplemental retirement savings as men, either. 

In addition to working longer, 46 percent of women also feel that they’ll need to reduce their standard of living in retirement while only 37 percent of men felt the same. Conversely, half of the men surveyed believed that they will live just as well if not better in retirement. Only a third of women were this optimistic. 

Life expectancy is also a contributing factor. Only 17 percent of men are divorced or windowed within the first five to 10 years after retirement whereas a third of women are. After 11 years, the number of single or divorced men stays about the same while the number of women jumps to almost half.

The gender pay gap is not the only issue when it comes to a woman’s retirement readiness but it does influence a lot of financial decisions that women make for the future. Being proactive and reaching out for guidance can help get some women back on track for a comfortable retirement.

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