Research Reveals Differences in How Men and Women Approach Retirement Planning
January 24, 2012 by N/A
Men focus on the numbers while women tend to plan based
on lifestyle goals
MINNEAPOLIS–(BUSINESS WIRE)– Men and women are preparing for retirement in
very different ways, according to additional findings from the New
Retirement Mindscape® City Pulseindex, released today by Ameriprise
Financial (NYSE: AMP). While men outpace women in planning for the
financial aspects of retirement (77% vs. 72%), women are more likely to say
they’ve thought about what they’d like to do during retirement. And though a
mere 22% of Americans report confidence in reaching their retirement goals, men
are significantly more likely than women to report this sentiment (25% vs.
19%).
“Financial preparation can help instill confidence in reaching your retirement
goals – and rightfully so – but thinking about how you’d like to spend your
time and where you’re going to live can have a dramatic impact on your overall
readiness,” said Suzanna
de Baca, vice president of wealth strategies at Ameriprise Financial. “The
activities you plan to pursue during retirement will likely have associated
expenses. Failing to consider these can have significant consequences.”
More than half of men (54%) report setting aside money in their own investments
(such as stocks and IRA’s) compared to 46% of women who say they’ve done the
same. Men are also more likely than women to report that they’ve determined the
amount of income they’ll need in retirement (31% vs. 20%). This additional
financial preparation may be one reason men are significantly more likely than
women to say they feel on track for retirement (41% vs. 34%) and express
confidence in their overall financial futures (22% vs. 16%).
Women are more likely to report that family and health taking a prominent role
in their planning. Women are significantly more likely than men to say they
plan to spend more time with family during retirement (41% vs. 34%) and that
proximity to family is a very important factor in determining where they will
retire (40% vs. 27%). They are also more likely than men to place importance on
their proximity to friends and other retirees (21% vs. 13%).
Women also report a greater emphasis on maintaining their health as they age.
More than half (54%) are making plans to ensure they stay healthy during
retirement, compared to 48% of men, and women are more likely to rate access to
healthcare options and facilities as a very important factor to consider when
deciding where to retire (38% vs. 32%). Women are also more likely to say
they’ve spent time determining how they will rest and relax in retirement (25%
vs. 19%) – an important part of preparing mentally for the retirement process.
While men and women are preparing differently, they both may be dramatically
underestimating how long they’ll need to live on their retirement savings.
Those surveyed estimate that they’ll spend approximately 17 years in retirement
while most financial professionals recommend accumulating enough savings for a
30-year retirement.
“It’s especially important that women begin saving early and plan for a longer
retirement because they have longer average life spans and spend more time out
of the workforce,” says de Baca. “And regardless of your gender, be sure to
share your retirement plans and expectations with your loved ones. Being on the
same page with your family can make achieving your goals much simpler and even
more enjoyable.”
About the survey
The New
Retirement Mindscape 2011 City Pulse indexwas created by Ameriprise
Financial utilizing survey responses from 11,611 U.S. adults ages 40-75. The
survey was commissioned by Ameriprise Financial, Inc. and conducted online by Harris
Interactive from August 4-12, 2011. The national average sample and the 30 U.S.
metropolitan areas were each weighted independently to best represent each
area. Propensity score weighting was also used to adjust for respondents’
likelihood to be online.
About Harris Interactive
Harris Interactive is one of the world’s leading custom market research firms,
leveraging research, technology and business acumen to transform relevant
insight into actionable foresight. Known widely for the Harris Poll and for
pioneering innovative research methodologies, Harris offers expertise in a wide
range of industries. For more information, visit harrisinteractive.com.
About Ameriprise Financial
At Ameriprise
Financial, we have been helping people feel confident about their financial
future for over 115 years. With outstanding asset management, advisory and
insurance capabilities and a nationwide network of 10,000 financial advisors,
we have the strength and expertise to serve the full range of individual and
institutional investors’ financial needs. For more information, or to find an
Ameriprise financial advisor, visit ameriprise.com.
Brokerage, investment and financial advisory services are made available
through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some
products and services may not be available in all jurisdictions or to all
clients.
© 2012 Ameriprise Financial, Inc. All rights reserved.
Ameriprise Financial
Stacy Housman, 612-678-7215
Media Relations
Source: Ameriprise Financial
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Copyright Business Wire 2012 |
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Business Wire, Inc. |
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