Marguerita-Cheng-13-Are women at a disadvantage when it comes to financial health in retirement
Marguerita Cheng explains that retirement planning differs for women due to the wage gap, career breaks for caregiving, longer life expectancy, and higher health care costs in retirement.
Video Transcript
As a female CFP Pro or as a female certified financial planner, people often ask me, How is retirement planning and financial planning different for women? Or, How could it be different? And in fact, it is different. There's several reasons for this.
The first reason is the wage gap. If women do earn lower wages, it means that they are actually having lower pension benefits and lower social security benefits because it's a function of their income. So first is the wage gap. The second reason is women are more likely to have a break in their work history for caregiving responsibilities, either for young children or aging relatives.
Third reason would be longevity.
Whoever thought that living long is a bad thing, it's not a bad thing. It just means they have a longer period of time to fund with a lower benefits. And we also have to be mindful of increased health care expenses for women in retirement.
