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Research shows that the income gap women experience while working carries into retirement, with women, on average, earning less retirement income than men.
Not only do they earn less while working, they accumulate fewer pensionable years due to taking time off for family matters. However, writes Marlene Y. Satter for Benefits Pro, financial education can help mitigate the factors that result in less retirement income.
“A study from the Center for Retirement Research at Boston College has found that more workplace education on financial literacy has an effect that normal financial literacy education does not, spurring workers to budget and save more—and that’s especially true for women,” she writes.
“Women face obstacles that men do not when it comes to saving enough for retirement. Examples include lower-paying jobs, time lost from the workforce, longer lifespans—not to mention the fact that many have no exposure to retirement plans at work, particularly if they only have part-time jobs. That means they end up short on retirement savings— little wonder that women make up the largest percentage of retirees in poverty,” continues Satter.
The study found that focusing on the savings needs of women “through information and motivation was quite effective,” she adds.
More: Education and motivation increase retirement savings.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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