In the era of equality, some questions related to the existence of gender gap in retirement plans remain. In fact, a 2016 study conducted by the National Institute on Retirement Security reported that women in their golden age could feel more restless when it comes to their retirement scheme. The study found that women tended to face more financial hardships when approaching retirement period.

What the Study Found on Retirement Plans for Women

As reported by the co-author, Jennifer Brown, the research found that women had more opportunities to face poverty in their retirement period. The study used three main tools for analysis. They were social security, pension savings, and personal retirement savings. Findings of the study were worrying, since it reported that at the age of 65 years and older, women were 80% more likely to get impoverished.

Those three tools used in the analysis are the main sources of income for women at their retirement period. Unfortunately, most female participants in the study reported difficulty to meet one or more of the three must-have retirement plans. Some things could explain the finding, including:

• Women are more likely to have part-time employment, which does not provide the employees with retirement plan
• Women spend more time for caregiving, thus making it more unlikely for them to take full-time employment
• Women have longer life expectancy. They are more likely to live up to the age, when no family members are not available to take care of them financially
• Wage gap applied in many industries. The 2016 census data reported that women mostly earn around 80% of the amount earned by men.

Key Findings of the Study on Retirement Plans for Women

Those are some aspects, which lead to financial plight of retiring women. They show that there is still gender gap in the retirement system. The following are some key findings reported by the study conducted by the National Institute on Retirement Security:

• Women are more likely to work as they approach retirement age. Statistic data showed that the percentage of women who worked at the age of 55-64 years increased from 53 percent in 200 to 59 percent in 2015. It even hit a rate of 61% in 2010. The trend may be related to caregiving responsibility. Women may choose to work when their kids have reached adulthood and finished their study.
• Gender gaps in retirement security. Statistics showed that in 2013, women were more likely to face old-age poverty than men were. Most industries still consider gender factor in designing the retirement security plans.
• Women tend to have varying backgrounds. The study found that this might affect financial stability in retirement age. Backgrounds here may include age, race, marital status, and education. These may affect the financial conditions, thanks to the gender gap in the retirement security systems.

Therefore, one of the most recommended solutions to prevent women from old-age poverty is public policies to strengthen the systems of retirement plans for women. Some non-profit and non-partisan organizations have been advocating for this. Enhancing social security for working women and saving programs could prevent unnecessary poverty.