Klobuchar recently released a report showing that lower lifetime earnings significantly impact women’s savings, pensions and Social Security benefits: Women age 65 and older collect $11,000 less in annual median income than men
Klobuchar is a cosponsor of the Paycheck Fairness Act to ensure fair pay for women at all stages of their careers
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar, Vice Chair of the U.S. Congress Joint Economic Committee, today held a hearing examining the unique challenges women face in retirement and discussing efforts to strengthen their financial security. Klobuchar recently released a report showing that lower lifetime earnings significantly impact women’s savings, pensions and Social Security benefits: Women age 65 and older collect $11,000 less in annual median income than men. Klobuchar is a cosponsor of the Paycheck Fairness Act and called for policies to help more women save and plan for retirement and ease the financial burden on women who take time out of the workforce to care for children or aging parents.
“With America’s senior population expected reach over 72 million by the year 2030, retirement security must be an increasingly key pillar in any plan to strengthen the middle class and expand economic opportunity,” Senator Klobuchar said. “Women face unique challenges in planning for retirement, and we need to be sure they have the ability to save and build financial security for themselves and their families.”
Women face greater financial risk in retirement than men, as they not only tend to live longer but also typically earn less during their working years. Women who work full time earn about 80 cents for every dollar men earn and, as noted in Klobuchar’s recent report, those lower lifetime earnings often translate into lower Social Security payments, pension incomes and personal savings: The average monthly Social Security check for female retirees is 78 percent of what it is for male retirees, and women’s median income from company or union pensions is 53 percent of men’s median income from those sources.
Two-thirds of family caregivers are women, and those who take time out of the workforce to care for children or aging loved ones spend, on average, 12 fewer years in the paid workforce. In addition to lost wages, family caregivers also pay roughly $5,500 per year in out of pocket expenses. Klobuchar has introduced legislation that would help ease that financial burden, by allowing families to qualify for a federal tax credit of up to $1,200 per year.