Baby boomer, Gen X women fear not having enough retirement savings

Congresswoman encourages growth in number of female financial advisers

May 7, 2014 @ 2:03 pm

By Mark Schoeff Jr.

Most female baby boomers and Generation Xers fear they will not have sufficient money for retirement, a situation that's creating an opportunity for financial advisers, according to a report released Wednesday by the Insured Retirement Institute.

More than two thirds — 70% — of female baby boomers and 88% of Gen Xers have “weak or no confidence” that they will have enough money to “live comfortably throughout [their] retirement years,” the IRI study shows. Roughly the same number — 66% of baby boomers and 88% of Gen Xers — have “weak or no confidence” that they've done a good job preparing financially for retirement.

One reason for their bleak outlook about retirement is that nearly 20% of baby boomer women and 35% of Generation X women do not have any retirement savings, according to the report. Of the Gen X women who have saved for retirement, 44% have accumulated less than $50,000.

The study also found that women are not seeking financial advice. More than half of baby boomer women and 75% of Gen X women have not consulted a financial adviser.

“Unfortunately, few women across the baby boomer and Generation X groups are really confident in achieving a financially secure retirement,” Cathy Weatherford, IRI president and chief executive, said at a Capitol Hill event. “Women want help. They need help. We can do more to encourage the use of financial professionals to build holistic financial plans so that women become better prepared for their retirements.”

The economy has undermined women's ability to save for their post-work years, according to the report. For those in Gen X, 35% have had difficulty paying their mortgage or rent and 19% have stopped contributing to a retirement plan. For baby boomers, 21% have had trouble paying for housing and 17% have ended retirement contributions.

The study was based on a survey of 403 Gen X women between the ages of 32 and 51 in December and 414 baby boomer women between 51 and 67 in January. The portion about financial advice is based on a survey of 605 women between 25 and 49 who were surveyed in March.

Women financial advisers are well-positioned to meet women's needs in retirement planning, according to advisers who participated in the IRI event. Women make up about 25.7% of financial advisers in the United States, according to the Bureau of Labor Statistics.

Julie Casserly, president of JMC Wealth Management, said a female adviser is more adept at creating an environment in which women can tackle tough issues about their current finances and look ahead to retirement.

“I decided to let my freak flag fly,” Ms. Casserly said. “I decided to actually own my femininity and be who I am, and have a safe space for people to talk about their fears around money.”

Katie Libbe, vice president for consumer insights at Allianz Life, said women are looking for financial advisers who take a holistic approach to planning and are family-oriented.

“It's all about relationships and services,” Ms. Libbe said.

Those are areas where female advisers can excel, according to Millicent Eubanks, associate vice president for investments at Wells Fargo Advisors.

“There's a nurturing that we bring,” Ms. Eubanks said, “a desire to meet you where you are.”

A member of Congress encouraged growth in the number of female advisers.

“Women need financial security,” Rep. Gwen Moore, D-Wisc. and a member of the House Financial Services Committee, said at the event. “Where are they going to get that advice? From other women.”

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Upcoming Event

Apr 30

Conference

Retirement Income Summit

Join InvestmentNews at the 12th annual Retirement Income Summit - the industry's premier retirement planning conference.Much has changed - and much remains to be learned. Attend and discuss how the future is full of opportunity for ... Learn more

Featured video

INTV

Why broker-dealers are on a roll

Deputy editor Bob Hordt and senior columnist Bruce Kelly discuss last year's bounce-back for IBDs.

Latest news & opinion

Top 10 IBDs ranked by revenue

These independent broker dealers generated the most revenues in 2017.

8 podcasts advisers listen to when they aren't working

Listening to podcasts for the fun of it.

UBS continues to cut loans to recruits, while increasing compensation to brokers

The wirehouse reduced recruitment loans 20% and increased bonus loans 68% in the first quarter.

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print