The ‘triple whammy’ keeping women from saving for retirement

Illustration showing the same woman in three different vignettes, worried about her finances. The-triple-whammy-keeping-women-from-saving-for-retirement.

By Susan Rupe

Women face a “triple whammy” that makes it more difficult for them to save for retirement, said Tina Sanchez, national account specialist with BlackRock.

Sanchez was part of a panel discussing women’s financial wellness during a Vestwell webinar.

The three parts of the triple whammy, she said, are the gender pay gap, gaps in employment history because of caregiving or other factors, and women’s greater longevity.

She recommended advisors help women solve these retirement savings challenges by keeping things simple, and by using active management strategies and target date funds.

Sanchez said that BlackRock’s 2023 Read on Retirement Survey showed that one of the issues women struggle with the most is investment confidence.

“They worry they are not saving enough for retirement, and they don’t know how much they will need in retirement,” she said.

“The good news is that we have innovative solutions for both of those concerns,” she said. “We have products to create lifetime income. A lot of new products are coming to market. We believe innovations in the retirement space will help women address their uncertainties.”

Access to a workplace retirement plan is another issue hurting women’s retirement readiness, Sanchez said.

“So many don’t have access to a workplace retirement plan,” she said. Sanchez added that provisions in SECURE 2.0 to make workplace retirement plans available to part-time workers and others who traditionally had been shut out of these savings vehicles have the potential to boost women’s retirement savings.

Helping women develop confidence

Advisors and their female clients already are familiar with the statistics surrounding longevity and the gender pay gap, said Bonnie Triechel, chief solutions officer at Endeavor Retirement. But what should they do about those statistics? She provided three suggestions:

Begin by recognizing that women are now a part of the money conversation. In too many families, women grew up being told that it wasn’t “ladylike” for them to talk about money.
Help women grow into the role of money manager for herself and her household. Help her to become comfortable and confident in filling that role.
Don’t be afraid to have the conversations that are part of women and their financial journey. For example, discussing the cost of fertility treatments such as in-vitro fertilization, or other issues that impact women but traditional financial planning may not always have embraced.

Sanchez gave a final piece of advice surrounding the women’s retirement savings challenge.

“Women need to talk about their finances. And make sure people know it’s important to us. You need to turn to your employer for resources. Be loud if your benefits are not what you need. We need to save. The retirement crisis and the savings crisis are the same.”

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on X @INNsusan.