Staying home to raise kids has retirement repercussions, study finds

investmentnews.com:

Women who put their careers on pause are more than twice as likely than men who do the same to go back to work after retirement.

That’s according to data Friday from Charles Schwab, based on a June survey of 1,000 U.S. residents ages 22 to 88 with $50,000 to $5 million in assets about their retirement preparation and outcomes.

The data highlight that women may more often face specific hurdles around retirement, despite being more involved with finances and investing now than they have been historically.

While 14% of men who take time away from their careers end up having to go back to work after retiring, that compares to 30% of women, the survey found. Of those who put their careers on pause, 70% of women said it for parental leave, compared with just 6% for men. Thirty-seven percent of women also indicated it was necessary to provide child care, while only 4% of men said the same. Women were also nearly twice as likely to take time away from work because of health issues, at 23%, compared with 12% of men.

People who took time away from work were more likely to have started saving for retirement in their 30s (39%) than those who didn’t (27%).

Having a plan in place well ahead of time can help those who anticipate needing to take extended periods away from jobs, said Susan Hirshman, director of wealth management for Schwab Wealth Advisory and the Schwab Center for Financial Research. And meeting with an advisor is important for a reason people in the business know all too well — that one-size-fits-all planning is far from ideal.

“What we always like to share with people is that what’s good for your neighbor is not necessarily right for you,” Hirshman said. “People have different goals, lifestyles and savings habits. And