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Data & Research October 22, 2012
One-Third of Women Have Not Planned for Retirement
Despite being more concerned than men about the potential risks they face in retirement, fewer women complete basic retirement planning activities.
Reported by Rebecca Moore
A study by LIMRA found 32% of women have done no retirement planning. “Even though six in 10 women are concerned they aren’t saving enough to last throughout their retirement, we see few women taking steps to mitigate for this risk,” said Cecilia Shiner, senior analyst, LIMRA retirement research. Shiner noted that the LIMRA research confirmed earlier studies finding working women, on average, have accumulated 40% less than men for retirement.
Among the retirement planning activities listed by LIMRA, 47% of women indicated they have determined what their income in retirement will be, compared with 50% of men. Thirty-nine percent have determined what their expenses in retirement will be versus 43% of men.
Thirty-eight percent of women said they have calculated the amount of assets and investments they will have available to spend in retirement (versus 47% of men), and 29% have estimated how many years their assets and investments will last in retirement (versus 36% of men). Just one-quarter of women (26%) have identified the activities they are likely to engage in during retirement and their likely costs, while one-third (33%) of men have done the same.
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LIMRA found that women are less engaged in retirement and investment activities–only one-third of women said they are actively involved in monitoring and managing their retirement savings, compared with nearly half of men (46%). Two-thirds of women are not confident they will be able to live their chosen retirement lifestyle, yet only 26% of women spend time investigating financial products that could help them.
“The knowledge gap between men and women continues to be an issue–just 33% of women felt they were knowledgeable about financial products and services, compared with 55% of men,” noted Shiner.
Among women who said they are knowledgeable about financial products and services, nearly twice as many (60%) are actively involved in monitoring and managing their retirement savings, and more than half of these women are confident they will be able to achieve the retirement lifestyle they want.