Women Face More Debt In Retirement

Study shows lower wages make female retirees more likely to incur debt

Women Face More Debt In Retirement
July 11, 2016

A new study, by the National Institute on Retirement Security, shows that women, due to the difference in their pay, are more likely to incur more debt and live in poverty after retiring than men. According to the study, it is 80 percent more likely for women over 65 to live in impoverished conditions than men. This is three times more likely for women between the ages of 75 and 79.

While the pay gap is the largest reason for this, there are several other factors in the situation. On average, men do not live as long as women, meaning that women need to have more money on hand when they retire, to meet expenses for a longer period of time. Those who have been single parents or who divorce late in life may also be at a financial disadvantage, leading them to rack up a large amount of credit card debt or to live with almost nothing.

With the recent recession, many women and men now fear for their retirement. Those laid off may have had to dip into their 401(k) retirement funds or other savings to cover expenses while they searched for a new job, a process that often takes months. Others may have had to rely on credit cards or loans and are now struggling under that debt.

Let the free MoneyTips Retirement Planner help you calculate when you can retire without jeopardizing your lifestyle. If you want to settle outstanding debts for less than what you owe, try our debt settlement tool.

Photo ŠiStockphoto.com/PeopleImages

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