Women show low confidence in retirement financial security: IRI
May 14, 2014 by IFAwebnews Staff
New research suggests that that few women across the Baby Boomer and Generation X (Gen X) cohorts are confident in achieving a financially secure retirement.
According to a report from the Insured Retirement Institute (IRI), many women are still facing financial challenges, which are impairing their retirement readiness and outlook. Overall, only 30% of Boomer women and 13% of Gen X women have high levels of confidence in accumulating sufficient savings to live comfortably throughout their retirement years.
“Until we see more women feeling better about their household finances and the economy, we do not expect to see high levels of confidence in retirement prospects,” said Cathy Weatherford, IRI president and CEO. “More women have stopped contributing to their retirement accounts than have increased their contributions. This is not a recipe for retirement security.”
Weatherford said that most women do not take the path that leads to security.
“we know that working with a financial advisor generally leads to better savings behaviors and better outcomes, yet the majority of women have not consulted with a financial professional,” she said.
The economy has had a detrimental effect on Gen X women: 35% have experienced difficulties paying their rent or mortgage, 19% stopped contributing to a retirement account, and 13% prematurely withdrew funds from a retirement account. Boomer women also have been affected, although to a lesser extent: 21% experienced difficulties paying their rent or mortgage, 17% stopped contributing a retirement account, and 9% prematurely withdrew retirement savings. Furthermore, a quarter of Boomer women and 16% of Gen X women postponed their plans to retire as a result of the economy.
Other key findings from the report:
- Nearly one in five Boomer women and 35% of Gen X women do not have any savings for retirement. Of Gen X women with retirement savings, 44% have savings of $50,000 or less.
- One in five Boomer women and more than a quarter of Gen X women are unsure of when they will retire.
- About half of Boomer women plan to retire after age 65, including 29% who plan to retire at age 70 or later. Conversely, 43% of Gen X women plan to retire at or before age 65.
- More than half of Boomer women and three in four Gen X women have not consulted a financial professional about retirement planning.
The IRI study is based on three surveys of American women conducted during the past 14 months. The report was released during an event on Capitol Hill.
