Peak 65 women face outsized retirement risks, says the Alliance for Lifetime Income

Study after study has shown how women seem to be always at risk financially – and according to new research by the Alliance for Lifetime Income, it’s no different for women entering their peak retirement years.

The 2024 Protected Retirement Income and Planning (PRIP) annual study, now in its sixth year, reveals that 51 percent of women aged 61 to 65 have less than $100,000 in assets, including 67 percent of single women in the same age group.

With more than 4.1 million Americans set to turn 65 this year, the study underscores a growing financial crisis among women on the brink of retirement.

"The long-running effects of women earning less and saving less during their working years are now becoming magnified and felt by millions of Peak 65 women entering retirement," Jean Statler, CEO of the Alliance for Lifetime Income, said in a statement Tuesday.

The PRIP study's findings highlight the precarious financial situation of Peak 65 women, 58 percent of whom are married or living with a partner while 42 percent are single, divorced, separated, or widowed. Among single, divorced, or widowed women, 67 percent have less than $100,000 in household assets, making them especially vulnerable.

In yet another demonstration of the gender gap, women showed less confidence than men in their ability to create a sustainable retirement income. Notably, three-quarters (76 percent) of women, compared to two-thirds (67 percent) of men, consider "protection" a crucial aspect of retirement planning.

"It's no wonder that this year's study shows that women overwhelmingly say protection is very important to them when planning for retirement," Statler said.

Ironically, just two-fifths (39 percent) of women said they understand how annuities should figure in a retirement plan, compared to half (52 percent) of men.

“This latest PRIP report shows how much women value protected income,” observed Jean Chatzky, Education Fellow with the Alliance's Retirement Income Institute, and CEO of HerMoney. “Unfortunately, there's a huge knowledge gap preventing women from accessing these tools in enough time to make a difference."

The study also found women are significantly more inclined than men to seek asset protection advice from financial professionals, with 92 percent of women prioritizing this compared to 82 percent of men.

Women also shared greater concern about cognitive decline impacting their ability to make financial decisions, with 48 percent of women worried compared to 36 percent of men.

The findings from the PRIP study closely parallel the 2024 Peak Boomers Economic Impact Study, which also points to significant disparities between men and women nearing retirement. According to that study, the median retirement savings for Peak Boomer women is $185,000, compared to $269,000 for men.

Median Social Security benefits for women are $21,400, whereas men receive $28,400. And while 48 percent of male Peak Boomers have defined contribution plans worth $99,000, only 41 percent of women have DC plans with assets of $60,000. By 2030, 48,400 Peak Boomers with few assets and very low incomes are projected to qualify for SSI benefits, with a 69 percent majority of those being women.

"There’s a big disconnect between the four decades of saving that women know we have to do and using those accumulated assets to provide for the rest of our lives," Chatzky noted.