Millions of women are facing retirement disaster, according to new report

Millions of women are facing retirement disaster, according to new report
Those closest to retirement are among the least prepared.
OCT 13, 2023

With retirement just around the corner, a significant group of Americans have less saved for their post-working years than they need.

Across all adult age groups, just 44% of women believe they will be financially prepared for retirement, compared to 61% of men, and when asked if they feel financially secure only 43% of women said they do compared to 59% of men.

Looking at Gen X, the generation next in line for widespread retirement, just 38% of women feel ready for retirement. This cohort is also more likely to lack a long-term financial plan (67%) compared to all women (58%).

The findings are from a nationwide study by Northwestern Mutual, which also found that while almost two-thirds of men believe Social Security will be there when they need it, only 48% of women agree, falling to 37% among Gen X women.

"The impact of inflation and the worries people have about recession and retirement are felt unevenly, but they are significant for both women and men,” said Tim Gerend, chief distribution officer at Northwestern Mutual. “The bottom line is this: uncertainty about the future is cutting into confidence for many Americans, and that's where a trusted advisor can help individuals build a plan to help them take control of their financial futures." 

Across all age groups, outliving their savings is the biggest retirement fear among women (45%), rising to 52% among Gen X women; followed by declining health (41%) and boredom (30%).

YOUNGER WOMEN

Things are looking more positive for the youngest cohort of women with nearly 6 in 10 Gen Z women (59%) believing they will be financially prepared for retirement.

However, 79% of Gen Z women and 76% of Millennial women say their financial planning needs improvement.

Young women are also more likely to prioritize saving money and paying down debt compared to older generations, the 2023 Planning & Progress Study reveals.

"The youngest women in our workforce seem to be tethering more of their identity and purpose in life to their relationships, interests and professional personas," Gerend said. "Retirement can be amazing, but it can also be disruptive and challenging for someone who gets fulfilled from success at work. That's why financial planning conversations with expert advisors aren't just about investments and insurance; they're also about the beloved people and causes that give our lives meaning and a purpose."

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.