Sunday, February 27, 2022

Women are more likely than men to have no retirement savings

As the U.S. population ages, examining differences in retirement savings within the context of family history sheds light on whether men and women prepare for retirement. Here are some interesting bits of information from the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP) Program. SIPP collects data on all members in the household, marital history, fertility history (including multiple partner fertility) and retirement savings.

Many adults approaching retirement age may not be financially prepared to retire: 49% of adults ages 55 to 66 had no personal retirement savings in 2017, according to the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP) Program.

How many times you marry and whether you have children with one or more partners can have continual and lasting impacts on retirement finances according to the U.S. Census SIPP program? About 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men.

About 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men.

Women also lag men at the other end of the spectrum: 22% of women have $100,000 or more in personal retirement savings compared to 30% of men.

The term “retirement savings” means the combined measure of personal and spousal retirement savings for those who are married and personal retirement savings for those not living with a spouse.

Marriage, divorce, widowhood, and any change in marital status can have lasting impacts on finances and savings.

Among those married once:

About 35% have no retirement savings, compared to 60% of those who never married and 40% of those who married more than once.

4 in 10 of those who married once have $100,000 or more in retirement savings, compared to 2 in 10 of those who never married and 1 in 3 of those who married two or more times.

Among both men and women, adults married once are less likely to have no retirement savings and more likely to have $100,000 or more in retirement savings, compared to those who have never been married and those who have been married two or more times.

Whether an adult has biological children and whether they have children with multiple partners can have financial impacts across the life course and specifically influence retirement savings.

A smaller percentage of men who have children with one partner have no retirement savings and a larger percentage have $100,000 or more in retirement savings, compared to those with no children and those who have children with multiple partners.

Among adults who have never married, those who have children with a single partner are more likely to have no retirement savings than those with no children (72.7% compared to 52.7%).

In addition, a larger percentage of never-married adults who have children with multiple partners have no retirement savings than never-married parents with a single partner (81.7% compared to 72.7%).

Among never-married men, those who have children are more likely to have no retirement savings and less likely to have $100,000 or more saved than the men without children.

Men who have children with multiple partners are more likely to have no retirement savings than men who have children with a single partner, among those who ever married.

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