With retirement just around the corner, a significant group of Americans have less saved for their post-working years than they need.
Across all adult age groups, just 44% of women believe they will be financially prepared for retirement, compared to 61% of men, and when asked if they feel financially secure only 43% of women said they do compared to 59% of men.
Looking at Gen X, the generation next in line for widespread retirement, just 38% of women feel ready for retirement. This cohort is also more likely to lack a long-term financial plan (67%) compared to all women (58%).
The findings are from a nationwide study by Northwestern Mutual, which also found that while almost two-thirds of men believe Social Security will be there when they need it, only 48% of women agree, falling to 37% among Gen X women.
"The impact of inflation and the worries people have about recession and retirement are felt unevenly, but they are significant for both women and men,” said Tim Gerend, chief distribution officer at Northwestern Mutual. “The bottom line is this: uncertainty about the future is cutting into confidence for many Americans, and that's where a trusted advisor can help individuals build a plan to help them take control of their financial futures."
Across all age groups, outliving their savings is the biggest retirement fear among women (45%), rising to 52% among Gen X women; followed by declining health (41%) and boredom (30%).
Things are looking more positive for the youngest cohort of women with nearly 6 in 10 Gen Z women (59%) believing they will be financially prepared for retirement.
However, 79% of Gen Z women and 76% of Millennial women say their financial planning needs improvement.
Young women are also more likely to prioritize saving money and paying down debt compared to older generations, the 2023 Planning & Progress Study reveals.
"The youngest women in our workforce seem to be tethering more of their identity and purpose in life to their relationships, interests and professional personas," Gerend said. "Retirement can be amazing, but it can also be disruptive and challenging for someone who gets fulfilled from success at work. That's why financial planning conversations with expert advisors aren't just about investments and insurance; they're also about the beloved people and causes that give our lives meaning and a purpose."
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Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
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