Here’s What Retirement Looks Like for Single Women in America
The risk of running out of money in retirement rises for those with lower pay, longer lives or no partner. Millions of single women wrestle with all three. Women earn less than men on average during their working years and are more than twice as likely as men to leave the workforce for more than one year to care for children or aging parents, according to a survey of 5,261 Americans that Goldman Sachs plans to release Monday.
This shortfall compounds in retirement. Social Security checks are 20% smaller for women who first claim at 62 to 64 years of age, compared with men the same age. Single women, in particular, have smaller 401(k) and IRA nest eggs.
On average, single women between 55 and 64 have about $88,600 in retirement savings, compared with $136,685 for single men and $423,800 for married couples in the same age group, according to Boston College’s Center for Retirement Research. Women also tend to live longer, raising the projected total cost of retirement as they have to stretch their smaller savings over more years. Despite these financial obstacles, single women find ways to pursue new ambitions in retirement, including launching businesses and traveling the world.
They could have more time if their caregiving responsibilities have ended. With more freedom than many of their married counterparts, some women can make big changes without needing to compromise or negotiate. We spoke in depth with four single women who have retired.
Some have sizable nest eggs, while others rely on Social Security benefits or earnings from part-time gigs. Each has found fulfilling ways to define retirement for herself. Deb Hallisey saved diligently during her career as a consultant, and sought help from a financial adviser.
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