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    Five reasons why women should diversify their retirement savings

    April 19, 2022

    THE GENDER PAY GAP. HIGHER HEALTHCARE COSTS. MORE CAREGIVING RESPONSIBILITIES. LONGER LIFESPANS. THESE ARE JUST FOUR REASONS WHY IT’S SO IMPORTANT FOR WOMEN TO SAVE FOR RETIREMENT AND DIVERSIFY THEIR INVESTMENTS. 

    investing-while-female-youre-not-alone

    Women need to save more for retirement than men do. Here are five reasons why:

    1. The gender pay gap. In 2021, women earned just 77.3 cents for every $1 men earned.1

    2. The Social Security earnings gap. Because women earn less than men, women pay less into Social Security, which means they receive less Social Security income when they retire. On average, women 65 and older receive just 78% of the Social Security income men receive.2

    3. The savings and investment gap. Because of the gender pay and Social Security earnings gaps, women are unable to save as much as men. Plus, with less savings, they have less to invest.

    4. Higher healthcare costs. Women spend much more on health during their reproductive years (between ages 19 and 44) than men spend.3 For example, average annual health spending for women in this age range was $4,709 in 2019, more than double the $2,261 spent by men in the same age range.4

    5. Women’s longevity. In America, the average life expectancy for women is 81 years compared to just 77 years for men.5

     

    Improve your financial situation

    While it may not be in your power to close the gaps that disadvantage women financially, here are some steps you can take to improve your own financial situation:

    • Educate yourself. Jackson’s educational resources feature a number of articles focused on women and money.
    • Get comfortable talking about money. Although many women manage the family budget and make the majority of day-to-day purchasing decisions for their households, they often feel uncomfortable discussing money, even with their financial professional. In fact, 61% of women would rather talk about their own death than money.6
    • Find a financial advisor you trust. The right financial advisor can help you make wise choices regarding retirement savings and investments.
    • Diversify your portfolio. Purchasing different types of investments—stocks, bonds and real estate—can go a long way toward reducing your risk and improving your returns.
    • Commit for the long-term. Planning for financial freedom requires a continuing commitment to education and to making wise financial decisions every step of the way.

    To learn more, reach out to a financial professional today.

    1. "Gender Wage Gaps Remain Wide in Year Two of the Pandemic," Institute for Women's Policy Research, March 2022.

    2. "The Economic, Educational, and Health-Related Costs of Being a Woman", Juli Adhaikari, Maggie Jo Buchanan, Jessica Milli, March 2022.

    3. Ibid

    4. Ibid

    5. "Average US Life Expectancy Statistics by Gender, Ethnicity, State.," Simply Insurance, February 2022.

    6. "Women & Financial wellness: Beyond the bottom line" A Merrill study, conducted in partnership with Age Wave, August 8, 2021.

    All investments contain risk and may lose value.

     

    Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York, annuities are issued by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact the Company for more information.

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