What financial risks do women face in the United States?
Writer's Note: I am sharing this data with you in the hopes that you may do a better job than I did preparing for retirement. When I was rising through the ranks, I did not always maximize my contributions to a 401K plan or IRA. Today there is an even greater need for self direction to create a personal retirement plan and I hope you will find this information helpful. -Kathy Sperl-Bell
A study provided by the nonprofit Transamerica Center for Retirement Studies (TCRS) titled, Fourteen Facts About Womens Risky Retirement Outlook raises awareness of the financial risks women in the United States face and how they can improve their retirement outlook.
Our research has found that women around the world are concerned that future generations of retirees will be worse off than current retirees, said Catherine Collinson, president of TCRS.
Based on select findings from the 14th Annual Transamerica Retirement Survey of Workers, Fourteen Facts highlights specific areas of opportunity for women (and offers comparisons to men).
It also outlines some of the underlying reasons why women are at greater risk than men of not achieving a secure retirement, such as lower incomes, lower lifetime earnings, time out of the workforce to be a parent or caregiver, and longer life expectancies that drive a need for greater savings.
Did you know
Only 7% of women are very confident in retirement
61% of women are offered a 401(k) or similar plan
45% of women work part-time and
43% of women plan to retire after age 70
52% of women plan to work in retirement
Since 2006 TCRS has been publishing research reports and pursuing outreach campaigns regarding women as part of its annual retirement survey. In the United States, women can take greater control of their financial futures by taking small steps today that can ultimately lead to a giant leap in terms of their long-term retirement readiness, said Collinson.
These Fourteen Facts aim to raise awareness of retirement risks that women face and highlight opportunities regarding how women can improve their retirement outlook.
- Only 7% of women are very confident in their ability to fully retire with a comfortable lifestyle.
- 43% of women expect to work past age 70 or do not plan to retire.
- More than half (52%) plan to work after they retire.
- Most (65%) Baby Boomer women do not have a backup plan if forced into retirement sooner than expected.
- 53% expect to self-fund their retirement through 401(k) or similar accounts or other savings and investments.
- Of women who have or plan to take time out of the workforce to be a caregiver, 74% believe it will negatively impact their ability to save for retirement.
- 45% of women work part-time so are less likely to have workplace retirement benefits.
- 61% of women are offered a 401(k) or similar plan.
- 75% of women who are offered an employee-funded plan participate in the plan.
- 6% is the median contribution of women who participate in their employers plan.
- 55% of women are saving for retirement outside of work in an IRA, mutual fund, bank account, etc.
- The majority (59%) of women who estimate their financial need guess what their retirement savings needs would be rather than using a calculator or advisor.
- Only 35% of women use a professional financial advisor, most (79%) doing so for retirement investment recommendations.
- Many women (53%) want information that is easier to understand.
To read the entire Fourteen Facts survey report and fact sheet and additional information, click here or COPY and PASTE www.transamericacenter.org into your browser window. To read the entire report Seven Specific Steps Women Can Take To Improve Their Retirement Readiness, Click Here.
About the 14th Annual Retirement Survey
This survey was conducted online within the United States by Harris Poll on behalf of Transamerica Center for Retirement Studies between January 21 February 21, 2013, among a nationally representative sample of 3,651 full-time and part-time workers, including 1,902 women and 1,749 men. Potential respondents were targeted based on employment status and company size. Respondents met the following criteria: U.S. residents, age 18 or older, full-time workers or part-time workers in for-profit companies, and employer size of 10 or more. Results were weighted to account for differences between the population available via the Internet versus by telephone, and to ensure that each quota group had a representative sample based on the number of employees at companies in each employee size range. No estimates of theoretical sampling error can be calculated.