Women live longer, but save less: Here's what -2-

New Retirement Plan Limits: Miller also notes that in many countries, retirement plan contribution limits are the same for both men and women. However, he believes limits should be re-evaluated to account for the fact that women tend to live longer. "Adjusting contribution limits to allow women to save more on a tax-advantaged basis can help them build larger retirement nest eggs," he says.

Spousal IRA Contributions: Miller also recommends encouraging married couples to take advantage of spousal individual retirement accounts (IRAs), where one spouse can contribute to an IRA for the other spouse, who may not have earned income. "Tax incentives, such as tax deductions or credits, could be provided to incentivize these contributions," he says.

Caregiver Tax Credits: We've noted that women often take on caregiving responsibilities, which can impede their ability to work outside the home and save for retirement. "Implementing caregiver tax credits that provide financial relief and incentives for women who take time off work to care for family members can help mitigate the retirement savings gap," Miller says.

Progressive Tax Rates: Changes to the tax code can also help women save more for retirement. "Progressive tax rates that take into account income disparities can help address gender income inequality," Miller explains. "By taxing higher incomes at a higher rate, governments can generate more revenue that can be invested in social programs and services, including those that support women's financial well-being."

Financial Literacy Programs: Increasing financial literacy for women is a crucial step that society can take to help close the gender retirement savings gap.

"While it is essential to acknowledge the progress that has been made in recent decades toward gender equality in the workforce, it remains a fact that women often have less financial education overall, primarily due to disparities in their time spent in the workforce," says Sean Casterline, a wealth manager for Delta Capital Management in Orlando, Florida.

The combination of wage gaps, career interruption, and limited access to leadership roles are all factors that have resulted in less exposure to financial literacy opportunities. "Along with workplace equity and equal pay, we must also provide accessible financial education resources to empower women with the knowledge and skills necessary to make informed financial decisions," he says.

Miller agrees, and says tax incentives could be provided for companies or organizations that offer financial education and literacy programs, with a particular focus on women. "Improved financial literacy can empower women to make informed decisions about their retirement savings and investments," he says.

Earlier this year, TIAA issued a Retirement Bill of Rights, outlining the challenges facing people of all genders, races and ethnicities, as well as the steps policy makers and employers can take to address them.

Plus: These are the biggest money mistakes we make in our 20s, 30s and 40s

Expand savings programs

"It urges more states to follow the lead of those that have created options for workers who aren't covered by an employer plan and suggests that Congress join them and adopt a federal plan," Evans explains.

The bill also recommends that employers automatically enroll workers in retirement plans and increase their annual contributions. "It also proposes that policy makers should make it easy for workers to access simple, in-plan solutions that allow them to convert their savings into guaranteed lifetime income," Evans says.

Casterline says he believes there is plenty of room for improvement.

"Retirement plan providers have done a poor job guiding investors in retirement plans -- it's systemic," he says. Often, large companies don't want to get involved in giving specific investment guidance to participants. "They see it as a risk to the company if markets turn down," Casterline explains, "but if an investor is confused about how to participate and how to invest, they back away."

Terri Williams has over 10 years of experience writing about student loans, mortgages, real estate, budgeting, home improvement and business in general. Her work has appeared in The Economist, TIME, Forbes, Architectural Digest and Realtor.com.

This article is reprinted by permission from NextAvenue.org, (c)2023 Twin Cities Public Television, Inc. All rights reserved.

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-Terri Williams

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