Women through America say they have great expectations for their retirement years, with travel, hobbies, and spending time with their grandchildren among the plans.
However, while not every element of an active retirement is costly, many women are facing later years with financial restraints according to a new report from the Transamerica Center for Retirement Studies.
It found that just 16% of the women workers it surveyed said they were “very confident” in their ability to give up work if they are to have a comfortable retirement.
Among the greatest concerns of poll participants are outliving savings and investments (44%), cuts to Social Security including potentially disappearing completely (43%), declining health requiring long-term care (41%), not being able to cover basic family financial needs (39%), and cognitive decline, dementia, or Alzheimer’s disease (37%).
The concerns are exacerbated for the 39% of respondents who say they are currently or have previously been caregivers with a resulting impact on their working lives, which may have affected their ability to save for their retirement.
Women workers cite saving for retirement (52%), building emergency savings (46%), paying off credit card debt (42%), saving for a major purchase or life event (36%), and just getting by to cover basic living expenses (36%) as their financial priorities.
"Women have made great strides in educational attainment and access to career opportunities in recent decades. Yet, despite this progress, women are still at greater risk than men of not achieving a financially secure retirement," said Catherine Collinson, CEO and president of Transamerica Institute and TCRS. "Factors including the gender pay gap and time out of the workforce for parenting and caregiving can hinder a woman's lifetime earnings, retirement savings, and government and employer benefits. What's more, women tend to live longer than men, so they have an even greater need to save for older age."
In retirement, most women who contributed to the report (78%) are saving for retirement at work and/or outside the workplace including 401(k). However, they have just $44,000 saved, rising to $98,000 among Boomers. Additionally, one third have taken a loan, early withdrawal, and/or hardship withdrawal from their 401(k) or similar plan or IRA.
Women say they expect to need around $500,000 for their retirement, but most admit their savings requirements are a guess.
Just 29% of respondents said they have a financial advisor and just 20% have a written financial plan for retirement.
"Everyone must do their part and play a role in improving women's retirement security," said Collinson. "Policymakers can pave the way by addressing structural barriers and implementing reforms, employers can enhance their business practices and benefit offerings to be more inclusive of women's needs, women can take charge by further engaging in financial planning, and men can lean in and do more as advocates and allies."
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