Women Trail Men When It Comes To Retirement Savings: Study
Greeneville Sun, The (TN)
Women are considerably less financially ready for retirement than men, a new study finds.
According to data presented by Prudential Financial Inc., women on average have saved 43 percent less for retirement than men, a news release says.
Data from Prudential's 2018 Financial Wellness Census finds that women and men on average expect to retire at age 67.
But women have saved an average of $115,000 compared with $203,000 for men and nearly half (46 percent) of women said they have no retirement savings, the release adds.
The study did not address the wage gap between men and women, which critics say make it harder for women to save for retirement.
The findings come at the start of National Retirement Security Week, aimed at educating Americans about the importance of planning for a secure retirement.
"More needs to be done to help women develop a retirement income strategy to not only put them on a parity with men, but to ensure they are financially secure," said Kent Sluyter, president of Prudential Annuities, in the release.
Among the census' other findings, less than half of women (48 percent) are confident they'll have enough saved to last through retirement, the release says.
Only 38 percent are certain how much monthly income they'll want to have in retirement and only 31 percent know how much they'll have to save up to reach their retirement goals.
"Accumulating savings for retirement is important. But finding a way to generate a regular income in retirement is vital to a secure retirement for all, and particularly for women who have been unable to save as much as men," Sluyter said.
The census found the No. 1 retirement priority for women is ensuring their financial security in the event of outliving a spouse or partner. More than a quarter of women (28 percent) said they plan to rely on their spouse's money as a significant portion of retirement income.
But the data also shows 66 percent of women don't work with a financial advisor, either because they believe they can't afford it or that they don't have adequate resources to warrant an advisor's help.
"Annuities can be a powerful tool to help women create a steady stream of retirement income to supplement other savings," said Melissa Kivett, senior vice president, chief marketing and customer experience officer for Prudential Individual Solutions Group.
"For anyone, getting the right financial advice before buying an annuity or any other financial product is critical," Kivett continued. "For women especially, who are increasingly bearing more responsibility as primary wage earners and being the 'CFOs' of their household, it is even more important to help close the retirement income gap."
Organizations like the Alliance for Lifetime Income, established by Prudential and 23 other leading financial services companies, are working to promote greater understanding of how annuities can help grow retirement savings, the release notes.
"Financial wellness is about being able to meet one's financial needs as they evolve throughout a lifetime," Sluyter added. "The retirement planning model is now adopting this holistic approach - ensuring that retirees don't simply reach their retirement but can maintain financial security throughout it."