Recently, the Senate lost a giant, Senator Dianne Feinstein. I had the privilege of meeting with her office numerous times to discuss issues important to older Americans, in particular Department of Housing and Urban Development (HUD) senior housing. As a member of Senate THUD Appropriations, she served on the committee responsible for funding HUD senior housing. In 1993, when she was originally sworn into Senate, it was named the “Year of the Women,” because the number of female senators went from three to seven. At the time, it was a big achievement. “Dianne, the women of America have come a long way,” Vice President Kamala Harris said at Feinstein’s memorial service. “Our country has come a long way, and you helped move the ball forward, and our nation salutes you, Dianne.”

Women’s rights have come a long way; however, like many groups fighting for equality, more needs to be done.  Our country has a gender pay gap. Women on average make 82 cents on the dollar compared to men. On its face this is problematic; however, it also poses a hidden problem for retirement. Generally, people who earn less money save less for retirement. Consequently, women have 30% less saved for retirement than men, federal data reports. The United States Census Bureau revealed around 30% of men have saved $100,000 or more, compared to 22% of women. Additionally, 50% of women ages 55 to 66 have no personal retirement savings. Complicating matters further, the gender pay gap impacts Social Security because women are only earnings 80 cents in benefits on the dollar compared to men.

Another reason for the retirement savings gap is that women are more likely to be family caregivers. The pandemic saw the exodus of 2 million women from the workforce with a good deal becoming caregivers. By taking time off from work, women aren’t earning income; thus, potentially lowering their future Social Security earnings and not being able to contribute to their retirement accounts. According to CNBC, on average a mother of one child will earn 16% less in Social Security benefits than a woman without children.

Not being financially secure in retirement presents a variety of problems for women. Women live longer than men, which means more money needs to be saved. Particularly for health care expenses like long-term care, that’s costly. Some people argue that a married couples’ assets should be viewed in tandem. Even so, it’s still troublesome that the U.S. Government Accountability Office report “Older Women Report Facing a Financially Uncertain Future” in 2012, stated women who are widowed later in the life saw their income drop 37% compared to 22% for men.

There are several ideas on how to fix this problem. Some people argue that women should wait longer to collect Social Security, which would increase their benefits. While that may be feasible for some, it doesn’t apply to everyone. Imagine being 65 and having worked a physically demanding job for the past 40 years; delaying retirement might not be an option.

Recently, Senators Patty Murray (D-WA), Tammy Baldwin (D-WI) and Representative Lauren Underwood (D-IL) introduced the Women’s Retirement Protection Act of 2023. This legislation would provide protections from one spouse making choices that could impact their 401(k) without the others approval and awareness. Also, money would be provided to community-based organizations to increase retirement financial literacy for women and assist low-income women and survivors of domestic abuse to receive retirement benefits upon divorce. “Every American who has put in a lifetime of hard work deserves the dignity of a stable retirement. Yet that secure retirement is out of reach for too many women because of the systematic roadblocks like unequal pay, and time taken off work because caregiving responsibilities fall disproportionately on women,” Baldwin said. “I’m proud to fight for families and women to ensure they have the resources and tools they need to retire with peace of mind and stability.”

Other ideas include a Social Security caregiver credit and more employers offering paid family and medical leave programs that would allow women to continue to save for retirement.

Feinstein’s legacy demonstrates a commitment to even the playing field for women. Discussions about the gender pay gap must include how it impacts retirement security. As said by Senator Baldwin above, “Every American who has put in a lifetime of hard work deserves the dignity of a stable retirement.” Contributions to one’s family as a fulltime caregiver or the gender pay gap should never be a negative implication for retirement security.

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Evan Carmen, Esq. is the Legislative Director for Aging Policy at the B’nai B’rith International Center for Senior Services. Click here to read more from Evan Carmen.