Survey: U.S. Women Want a Secure Retirement, but Are Not Confident About Having One
Eighty percent of U.S. women say maintaining their lifestyles in retirement is a priority, but only 18 percent are confident they can achieve it.
According to a new survey from Prudential Financial, women of all age groups are actively considering their future retirement and financial security. But the survey also finds a large “confidence gap” between the importance women place on their financial goals and their perceived ability to actually make them happen.
Procrastination plays a role. For a variety of reasons, American woman say they are putting off financial planning.
The survey found that, 36 percent of millennials (ages 25-29) and 34 percent of those in Generation X (ages 30-42) are giving serious thought to what it takes to prepare for retirement. Retirement also is a top-of-mind consideration for 28 percent of baby boomer boomer women (ages 43-61) who participated in the study.
"We continue to see high levels of awareness across generations of women, which is encouraging," says Lori High, President of Prudential's Group Insurance. "They understand the issues, and are doing their homework. The fact that this awareness is not translating into action, and women are not taking steps to mitigate the potential outcomes associated with longevity – like outliving their savings or becoming a financial burden – remains a big concern."
Among the other findings:
Just one in five boomers, GenXers and millennials feel "very well prepared," compared to two in five matures (age 62 and up).
In reporting their expected sources of retirement income, roughly two-thirds of women indicated their own personal savings, over government support and/or a systematic workplace savings plan. Only 35 percent of millennials expect to rely on Social Security, vs. 91 percent of matures.
Forty percent of women "ahead" in their retirement feel very well prepared to make important financial decisions compared to just 7 percent of those "very behind."
Ninety percent of "very confident" women are ahead of schedule or on track with their savings, compared to only 4 percent of those "not" confident.
Seventy-two percent of women admitted that procrastination affects their own personal experience to some degree.
One-third of women cite family demands as the number one factor contributing to their delays, and one in five say they put off financial planning and saving because they just don't make enough money.
Prudential's 2008 “Study on the Financial Experience and Behaviors Among Women” is available at www.prudential.com.
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Eighty percent of U.S. women say maintaining their lifestyles in retirement is a priority, but only 18 percent are confident they can achieve it.
