Daily Money - The Retirement Savings Gap

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 

April 5, 2022

Together with 

At the beginning of my career (ok, for about 15 years), I never negotiated when I got a job offer. Had I done so, some of the money I left on the table would be sitting in my 401(k) right now. The gender wage gap costs women an estimated $1.6 million in lost retirement savings over the course of their careers, according to a new report by the Center for American Progress. This is a systemic problem, needless to say, and it shouldn’t fall on any individual to negotiate it away. The formula for calculating Social Security doesn’t help here, since it’s based on your top 35 years of earnings. Women have lower wages than men, on average, and also take more breaks from the paid workforce to care for family members — vital work that doesn’t count toward future benefits. So women wind up with Social Security checks that are 22% less than men’s, on average. I consider myself lucky to have access to a 401(k) and the ability to make up for lost time —I wish all workers had the same.

Best wishes,

P.S. If you got this newsletter from a friend, sign up here for email delivery to make sure you don't miss the next issue.

Timely Retirement News, Insights and Advice

The formula for calculating Social Security only compounds the loss for lower-earning women.

You know the tax deadline is coming up, but these other two dates might’ve slipped under the radar.

Unfortunately, flight prices are rising faster than inflation.

9 To Know: Reasons to Consider a Roth IRA

Presented by 

Want to help lower your taxes in retirement and increase your retirement savings?

A Roth IRA, with tax-free growth potential and tax-free withdrawals, may be able to do just that (as long as certain  requirements are met). Contributions to a Roth IRA are made on an after-tax basis and can give you tax flexibility in retirement.

A Roth IRA may improve your tax picture—no matter how old you are. Take the time to see whether you would benefit from one by reading the full list of reasons to consider a Roth IRA.
 

Reader of the Week

Please welcome our Reader of the Week! Diane, 75, is a retired finance executive who lives in New York City.

What are you up to these days?

I swim four days a week for two hours each day. I’m a life-long swimmer from the time I learned in the bays and ocean off Long Island. I competed in the Senior Olympics in 2009 at Stamford University in the 60 to 65 age bracket. A highlight was carrying the New York State flag in the Opening Ceremony and interviewing with Steve Adubato afterward for a ‘Healthy Living’ segment on PBS.

But now, because of Covid, I’ve gone two years without swimming. I’ll rejoin the U.S. Masters Swimming program, but I need some time to get up to speed. My plan is to prepare for the Masters competition in five years, when I’ll be in the 80 to 85 age bracket. I swim the individual medley, which is 200 meters or yards (depending on the pool) doing all four strokes. That’s my plan to stay active and live independently for as long as I can.

I choose water spots for my travels. I just got back from Antarctica, where I kayaked alongside inquisitive seals and penguins.

Wow! What’s your favorite trip ever?

In 2013, I visited Papua New Guinea — scuba diving, hiking the jungles and kayaking. My dad served in PNG during World War II and told me stories about his time there. I knew some day I had to travel there. It was my first big trip and my favorite.
 
I’m a life-long artist. When I returned home, I created a series of about 30 life-sized oil paintings, “Faces from Papua New Guinea,” from photos of the indigenous people I met there. I’m looking to possibly donate this ethnographic study to a museum, travel company, corporation or financial institution doing business in Papua New Guinea, or to a religious or community organization with an emphasis on the region.

I also audit classes at Hunter College to prepare for my journeys — science courses such as geology, astronomy, oceanography. My next trip is to Ecuador in 2023. To prepare, I’m studying the culture and societies of Latin America. It’s fun to have something to look forward to, to plan and to study for a better understanding of what I’ll experience.

Definitely! Does anything keep you up at night?

The women in my family live to age 103. Where will I be? This is a real concern. I plan to live independently in my apartment in New York City for as long as I can without family nearby to help. Continuing Care Retirement Communities are too costly, and I don’t have long-term care insurance. I’m looking to uncover options for care during independent living and until I need to move.

Retirement News From Around The Web

Second Booster Shots: Who Should Get One and When?
Adults 50 and over have been cleared for the second booster shot, but experts say whether to take it right now depends on your personal situation. AARP

Family Members May Want Your Stuff — Just Not the Stuff You Think They Want
If someone says no to your suggestions, ask what they would like instead to help remember you, a decluttering expert recommends. NEXT AVENUE

Three Painful Ways in Which Inflation Is Ravaging Seniors' Retirement Income
For one, bonds are taking a beating. USA TODAY via YAHOO FINANCE

4 Dangerous Assumptions That Could Hurt Your Retirement Plan
Past performance is never a guarantee of future results. MORNINGSTAR

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money.

Privacy Policy • Advertise With Us • We're Hiring!

To stop receiving these emails, unsubscribe or manage your email preferences.

Copyright ©2022 Ad Practitioners, LLC. All rights reserved.

Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, U.S.