They can cost females more than $1 million in retirement savings

Any woman who wants to take a break from working to raise children, help parents, or just work on a meaningful project will lose more than a million dollars.

Financial Finesse says women who take career breaks could face a retirement savings shortfall of nearly $1.3 million. The workplace financial wellness provider says this is compared to women who remain in the workforce throughout their working careers.

Aside from career breaks, women are already at a disadvantage in retirement because they’re expected to live longer than their male counterparts. This puts them at even more risk to be broke by the time they hit retirement age.

“Although we assume pay parity for the typical 25-year-old, there is a 28 percent gap in the additional retirement savings needed to cover estimated retirement expenses primarily due to women’s greater life expectancy,” says Liz Davidson, CEO and founder of Financial Finesse.

According to the study, millennial women need to save 12.6 percent of their pay to meet retirement expectations. A career break, on top of already expecting to live longer than men, puts women at a huge financial risk later on in life that they can avoid if they take steps now.

Save now, avoid stressful retirement later

Regardless of how old you are or where you are in your career, no doubt that retirement is freaking you out. Even young people are more stressed about retirement than paying off their student loans. And this is a group that has the opportunity to save more, earlier in life, than their Gen X and baby boomer counterparts.

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But it’s not just young people that are scared to get old. Old people are scared of being old, too. Over half of retirees are worried that they’ll run out of money before they die. The problem is, retirees don’t actually know how much money they need to survive as their old age, and 25 percent of baby boomers have less than $5,000 saved for retirement.

If you are younger, even putting $100 a month into a retirement fund could give you half a million dollars if you start now as opposed to 20 years from now. But even if you’re an older millennial, Gen Xer, or baby boomer, you can still save with catch-up contributions, and that number could double if you take advantage of workplace contributions.

But keep in mind that regardless of whether when you’re starting, make sure you’re saving enough to last you well into retirement and possibly beyond. Many Americans can’t even fathom the idea of living until 100 years of age, which puts them at a huge disadvantage for not understanding what it takes to survive in retirement. Financial security is the biggest stressor of Americans today. So it’s best to be prepared for any and all circumstances for your older years, including caring for an ailing spouse, health issues of your own, or just living within your means without having a steady income anymore.

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Article last modified on October 9, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Women Face More Financial Setbacks When Taking a Career Break - AMP.