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Saving for retirement can be challenging, especially for women, according to a that noted that women have less than half the retirement savings of men. 

As women historically make up more than 60% of ����ֱ�� State University's incoming class, ����ֱ�� State Today sought guidance for today's students on the importance of financial literacy. 

Omid Bagheri, Ph.D., associate professor in the Department of Economics in the Ambassador Crawford College of Business and Entrepreneurship, said there are many factors responsible for why women face more retirement challenges than men. 

“Specifically talking about the U.S. labor market, still with all the improvements, there is some significant difference between the amount of money being paid to a female worker with all the same characteristics and qualities compared to a male worker,” Bagheri said.  

According to the , women earn 84 cents for every dollar men earn today, which can lead to fewer retirement savings.  

According to the USA Today article, taking time away from work to care for family is another contributing factor as policies and regulations for maternity leave may not help women long term.  

“Most of the time, the contribution of women to their family is not being counted, economically speaking,” Bagheri said. "So, people who are putting policies and regulations in place now are trying harder to make sure that women are being rewarded, or at least not punished, for the time that they are spending on giving birth or taking care of their family. Then, when they get to a retirement point, they have not had so many deductions from their salary or their wages, which was making their retirement fund so small.”

Since caregiving is not economically considered, women are also more likely to struggle with their retirement savings if a divorce is involved. , an increasingly common occurrence, women’s standard of living declines by 45%.  

“When women who are not involved in the economy get a divorce, she's left alone without having any knowledge or any information [regarding saving for retirement],” Bagheri said. “So, of course, educating them in that capacity can help them a lot.”

But, here’s the good news for ����ֱ�� State students. Women holding or pursuing a college degree are lowering their chances of financial struggles post-retirement. Learning financial literacy skills now will help prepare women for unforeseen circumstances that may disrupt their investments in retirement funding. Earning a paycheck alone is not enough, according to Bagheri.

“People might think they are okay because their salary is good enough to take them to the end of the month before they receive the next paycheck,” Bagheri said. “But what if you don't receive the next paycheck? What if there is a layoff? What if there is a financial crisis and your employer goes out of business? Do you have anything reserved for you to use while you don't have a job or before you can find another one?”

Studies show that with their emergency savings.

“If you remember what happened between 2007 to 2010, the financial crisis, so many people lost their jobs because of that,” Bagheri said. “Since many of them didn't have enough savings, they couldn't pay their mortgages, they lost their houses, they lost everything. So, you need to have some mindset of being prepared for an unforeseen future that can go harsh on you.”

Basic finance courses at the Ambassador Crawford College of Business and Entrepreneurship can teach younger generations of women how to increase their involvement in the economy and prepare them for unforeseen circumstances.

Experts, according to the USA Today article, say women should start saving for retirement as soon as possible and prepare to possibly leave the workforce later. Since women face more disruptions when trying to save money, it is presumed that they should start saving money in their 20s and continue putting money aside until their 60s. Through finance education and consistent saving, women will experience more financial comfort when they are older,  

“[Financial literacy] can be a big help to both men and women, especially young ladies, to learn about what they should start doing right now before it gets too late,” Bagheri said.

Learn more about the Department of Economics.