May 29, 2020
A new study by the National Institute for Retirement Security (NIRS) shows a troubling financial picture for American women in their retirement years. While the Gender Pay Gap has been talked about more frequently in recent years – the fact that over the course of their respective carriers, women are paid less than men for their work – we now know that the Gender Pay Gap extends into retirement as well. As of 2019, women earned $0.79 for every dollar men made and the NIRS study found that in retirement women receive approximately 80% of the retirement income that their male counterparts receive, effectively mirroring the Pay Gap.
This troubling trend is further compounded by the fact that women, on average, live longer than men. And this problem is even greater if they have to care for a sick or disabled spouse or family member. The Family Caregiver Alliance notes that:
- 66% of caregivers are female
- The average caregiver is a 49 year old women who works outside the home and provides 20 hours per week of unpaid care to her mother.
- While men also provide assistance, female caregivers spend up to 50% more time providing care than men.
The NIRS study’s authors expand on some of the challenges presented by this trend, “Women experience a steep decline in income past 80. Women age 80 and older are much more likely to be widows…Health care costs and long-term care costs in retirement are challenging for most people, but can be more so for women, who bear these costs for longer and may have already spent down assets if their spouse predeceases them.”
To help cope with retirement shortfalls and challenging family caregiving situations, more seniors are discovering that a life settlement is a powerful financial tool that can help bridge a gap in retirement income and provide much needed funding for medical care or long term care costs. Life settlements allow a senior to tap the market value of their life insurance policy. The market value of a life insurance policy is an amount less than the death benefit but more than the cash surrender value (if the policy has any). To have your life insurance policy evaluated for a life settlement it is highly encouraged to speak with a life settlement broker or provider who is licensed in your state. If you aren’t sure where to start, our team of life settlement experts would be happy to answer any questions!