by Nicholas Hamner
Investment Advisor Representative & Director of Marketing
[email protected]
As a society, we like to debate the differences in the sexes. The arguments are not always above board, and they’re rarely fact based, but they continue on nonetheless. It’s not anything we ever like to dip into here.
However, two facts exist that present an interesting conundrum. Women typically do not earn as much as their male counterparts, and women typically live longer than men. Together, these facts mean that women will need more money in retirement than men.
A website—NetCredit—tried to determine just how much more women will need in retirement compared to their male counterparts. They calculated their figures by taking the average life expectancies in each state, using census data to determine average earnings of both sexes, and using the MIT Living Wage Calculator to determine the cost of living in each state. To allow for some element of fun in retirement, they boosted the living wage calculation by 20%.
What did their findings and calculations show?
- In Pennsylvania, women need $307,000 more than men saved up to enjoy their retirement.
- In New Jersey, that number is $365,000.
- Only three states are higher than the New Jersey number. Hawaii, with $423,000 and both New York and California with $396,000.
- Hawaii has the highest disparity in earning capability and savings need, meaning women in Hawaii would need to work 11.23 years longer in addition to requiring the most additional savings.
- For reference, women in Pennsylvania need to work an additional 7.8 years. But projections show they’ll get 5.6 more years in retirement than men. In New Jersey, women need to work 7.5 years more, but they’ll get 5.9 years more in retirement.
As always, these studies are not guaranteed. And while this one used reliable data, the projections aren’t anything to bank on. But they do provide food for thought.
When it comes time to plan your own retirement, if you haven’t done so already, you know your earnings, your savings, and your retirement goals much better than projections can estimate. Plus, you also have a pretty good gauge on how long you’ll be here to enjoy your retirement and accomplish those goals. No census data needed!
But the most important thing you need to have when planning your retirement is a plan! And if you need help with getting started, that’s where we come in. Just let us know and we’ll get started working together.