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SOURCE:allAfrica
A report has shown that women face challenges that often make it more difficult for them than men to adequately save for retirement. In light of the challenges, women need to pay special attention to making the most of their money.
The report published by the US Department of Labour indicated that women tend to earn less than men and work fewer years thereby reducing the amount of savings that accumulate for their retirement.
"Women stay at jobs for a shorter period of time, work part time more often, and interrupt their careers to raise children. Consequently, they are less likely to qualify for company-sponsored retirement plans or to receive the full benefits of those plans," the report said.
On the average globally, women live five years longer than men, and thus need to build a larger retirement nest for themselves.
There are some studies that indicate that women tend to invest more conservatively than men but they are limited by shorter period of time they work.
The report also indicated that women tend to lose more income than men following a divorce, a development that usually compounds their financial problems at retirement.
"Women aged 65 or older are more than 70 percent likely than men aged 65 or older to live on an income below the poverty level," the report said