Significant disparities remain between men and women during the transition to retirement. And even if they have savings, it melts at a disturbing speed.
Social security data is clear: women’s retirement pension is always 40% lower than that of men. Their purchasing power is less important, a phenomenon aggravated by inflation, and their savings, also less, are exhausted faster. The explanation to this difference is very simple. The career of women is often shorter, but also more fragmented, with periods of inactivity for family reasons. There is of course maternity leave and parental leave, but women are also more likely to take care of their elderly parents. The contribution duration, and therefore the number of quarters, is less important.
Women also work more frequently part -time than men. When they retire, women are then naturally more exposed to precariousness. And even if they managed to put money aside, their savings are exhausted much earlier than that of men. It is in any case the conclusion of the British Ministry of Labor and Pensions.
According to this analysis, retired women have approximately 48% less savings than men. A study conducted by the interactive financial services company Investor also warns against the risk for women to see their retirement savings leaving only seven years after their retirement, much earlier than expected.
It should also be remembered that women have higher life expectancy than men. The amount of their pension is less important, but they live more retired and can therefore be in financial difficulty at an advanced age, while their savings have been exhausted for several years. Take the example of a woman who has retired at 67. She would no longer have any savings at 74. While a man who has retired at the same age would see his savings dry up at only 84 years old.
This observation recalls how much retirement remains a difficult time for many women. With shorter careers, lower income and a longer life expectancy, they often find themselves in difficulty when they should calm this new stage. The risk of seeing their savings exhausting too quickly is not an isolated case, but a reality that affects thousands of women.
