According to a recent study by SaveUp.com men save nearly $850,000 more than women. Shocking isn’t it? That’s a huge number, and one that’s not easy for us to wrap our heads around.
At first glance you may think that it’s because women earn less, or that we spend more than men, however, that’s not the full story.
Women often take time off from work to care for family members (aging parents or children) meaning lost wages in addition to earning less than their male counterparts.
Women also live longer meaning they need to save much more than men for retirement and have higher long-term care and insurance costs. Additionally, the study revealed that women have higher health care premiums.
You can see all the details in a fancy infographic below.
Personally I’ve been a stay at home mom for most of my adult life, only fairly recently transitioning back into the workforce. My job is the more flexible job even now, so making up that “lost income” from a dozen years at home is nearly impossible.
As far as healthcare costs, we have a family plan so while I don’t see a huge difference in my premiums I know our out of pocket expenses have been higher for me (mainly due to childbirth).
The data is no only essential to me, but to all women. What can you do with this information though?
Save More: Women should not only have higher savings goals, but higher retirement savings than their male counterparts.
Fight for Pay Equality: Women should ask for raises more often, and not be afraid to ‘toot their own horn’ when it comes to their accomplishments.
Separate, but equal: Women should have money that is separate from their spouse due to the issues that could arise from divorce or death. You can still have joint finances, but your retirement and a savings account should be separate.
Make Sure You (and your spouse) are Insured: Insurance is essential, especially life insurance for both you, and if you have a spouse make sure their policies are up to date as well. The last thing you want is to have to deal with a loss and financial issues at the same time.
What do you think? Has your experience mirrored the results? Are you surprised by that number?