Women Must Work 13 More Years Than Men
October 2, 2010 No Comments
If these little piggies retired together, chances are Mr. Piggy Bank had to help out his wife.
A very sobering article in the Wall Street Journal found that women have to work 13 years longer than men to be in the same financial place for retirement. This is primarily because they are still not getting equal pay.
What makes it even worse is that women generally need more money in their old age because they live longer.
- Consider this example of a female and male manager, both 50 years old and looking to retire at 65. She makes $81,000, he makes $100,000 in 2010, and each gets a standard 2% annual raise. Not only will he end up earning more than $350,000 than she did over those 15 years, he’ll also end up saving 23% more for retirement– even though both contributed 10% of their income to their retirement funds each year and got a 5% average annual rate of return.
Of course, being the WSJ, they want to know what women are doing to fix this problem.
Personally I want to know what we are going to do with all the elderly women in the country whose lives outlasts their savings.
The Salem Solution is just not as popular as it once was.
