Women’s Retirement Worries: Can Credit Unions Help?

As a woman in her late 20s, retirement is not on my list of top priorities, though there may be some who will argue that it should be. The global pandemic changed the retirement plans of many Americans across the country. According to an article from CNBC, 32% of Americans planning to retire say they’ll be retiring later than expected because of the pandemic, while 11% say they plan on retiring early. However, when it comes to who will be able to confidently retire, there is a large gender gap. During the pandemic, while 58% of men were able to continue to save for a retirement monthly, only 41% of women were able to do so.

This gender-retirement gap has been a problem long before the pandemic started. Women in America are still earning less than men, and the pandemic has exacerbated the problem in some respects. A report from Age Wave and Edward Jones found that if a man and a woman both work full-time from the ages of 23 to 65, a woman will typically earn about $469,000 less than the man, all because of the gender pay gap.

So, what can credit unions do right now? Unfortunately, credit unions don’t have the power to raise the wages of its female members, but you can reevaluate and raise the salaries of your own institutions’ female employees. It shows you care about and value them, and it sets an example for the community at large.

As for your members, help them create a financial plan. Financial plans not only help build confidence when it comes to money, but also those who have one generally achieve greater success when it comes reaching financial goals. Feel free to give financial advice to women who need and ask for it. You can also go over the steps members can take to write a financial plan for themselves and advise them on what should be included in the plan for them to make the most of it. If your institution offers financial planning services, don’t be afraid to pass on that information to members if they express interest.

Credit unions may not be able to close the gender-retirement gap on their own, but you can take steps to shrink it in your community and set the example for how women in the workforce should be treated.