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Women Face Retirement Security Challenges

(Cont...)

Women’s household income, on average, fell by 4% with divorce, almost twice the size of decline that men experienced. For widowhood, women’s household income fell by 37%—while men’s declined by only 22%. Unemployment also had a detrimental effect on income security, though the effects were similar for women and men; household assets and income fell 7% to 9%

Policy options that address the income security challenges women face in retirement could include expanding existing tax incentives to save for retirement or improving access to annuities.

Increasing Social Security benefits for widows could provide additional income for women who have few options to increase their retirement savings, but would also increase costs to the Social Security program and have implications for its long-term solvency.

Jay Polansky
editors@plansponsor.com

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