As Women Face Uncertain Retirement Outcomes, Advisory Practice Says: ‘Relate’

As studies indicate women face uncertain retirement futures, advisers should focus on relating to their female participants, such as through one-on-one consultations or women-oriented events, according to Jessica Ballin, the principal in 401(k) Plan Professionals, an all-women team of retirement plan advisers.

“We like being creative with our education … being relatable and delivering the education in a way that connects with them,” Ballin says.  The adviser was responding to recent reports that show uncertain outcomes for women in their retirement saving and planning.

‘The Gravity of the Situation’

According to a recent survey by IRALogix, a retirement industry fintech provider, 71% of women said they expect to outlive their retirement savings. The report, “Women’s Road to Retirement,” was based on data obtained from late July through late August. Among the respondents, 48% of women reported they will use up their savings between four and seven years into retirement.

Meanwhile, 30% say they have sufficient money to last between one and three years, and only 7% believe they have enough to last their entire retirement, the researchers found.

“Given what we already know about Americans’ retirement readiness, we hypothesized the survey’s results would point to women being largely unprepared for retirement, reflecting the general trends of low savings and diminished confidence that retirement savings will last as long as needed,” Lowell Smith, IRALogix’s co-founder, said in a statement. “What we weren’t expecting was the gravity of the situation. As many as seven in every 10 women surveyed were certain their savings won’t last the length of their retirement, driving almost half of the respondents to consider relinquishing their independence and moving in with family members to save on expenses.”

Furthermore, the 2023 State of Women survey from HerMoney and Principal Financial Group, which included 900 full-time employees of small and midsize businesses, revealed 45% of female employees, compared with 58% of male employees, were confident about money management. Only 22% of women consider themselves knowledgeable about investing, compared with 46% of men, the researcher found.

When it comes to financial guidance, women reported seeking the advice of financial experts slightly more than men: 59% of women noted working with an adviser, as compared with 50% of men. Women are also relying more on other resources to learn about investing than men, whether it be podcasts (44% vs. 27%), books (40% vs. 26%) or workplace programs (25% vs.15%).

That education is important, Teresa Hassara, senior vice president of workplace savings and retirement solutions at Principal Financial Group, said in a statement accompanying the report.

“While employees’ needs are varied, almost everyone can benefit from more guidance, education, and support to build their financial acumen and confidence,” Hassara said. “The more personalized the experience, the more success we believe individuals will have when it comes to achieving long-term financial security and retirement goals.”

Women-Focused

Ballin says her firm offers events and education focused on women, specifically. The firm has hosted a variety of events to connect with female participants, such as hosting a wine-tasting event.

Ballin sees webinars and group settings as effective methods of communicating on topics like Social Security, drawdown strategies, financial wellness, generational planning and more.

“We do a lot of one-on-ones—virtual one-on-ones via Calendly links—and I think those are the meetings that really help females understand their finances,” she says. “We show the retirement income calculators. A lot of times [participants] are not even sure what questions to answer. We’ll help them with just the very basic knowledge—how much they should be saving—and empower them to learn more on their own about investing.”

The adviser notes that these practices can work no matter the gender of the adviser representative, so long as the participant’s needs are front of mind.

“The key really is just becoming that trusted resource, really being a good listener and talking to them on a level that isn’t intimidating,” says Ballin. “Then they can have a couple of takeaways that can be put into practice to improve their financial health and financial success.”