Why Women Are Navigating a New Financial Landscape

A shift is underway in how Americans, particularly women, plan for retirement. For non-retired women, the responsibility of securing a steady income stream for life is increasingly falling on individuals, rather than traditional pensions or employer-sponsored solutions.

According to a new Corebridge Financial study, “Women Speak Out on Money Matters,” a clear contrast exists between the retirement resources of retired and non-retired women. While savings and money market accounts are the most widely owned assets among both groups, the second-most common asset diverges dramatically. Among retired women, 33% reported owning a pension, while only 9% of non-retired women said the same. Conversely, 31% of non-retired women reported holding workplace retirement accounts, compared with just 16% of retired women.

This difference underscores the continuing evolution of the retirement landscape, according to Corebridge: Nowadays, pensions are rare, and individuals must navigate alternative solutions. The study revealed that retired women are nearly three times more likely than their non-retired counterparts to own an annuity, with ownership rates of 13% and 5%, respectively.

Financial advisers can start out by helping retired women understand their retirement income needs, says Terri Fiedler, president of retirement services at Corebridge Financial.

“As with anything in life, it’s much easier to build an income strategy when you know what it is you’re working towards,” she says. “With that foundation established … advisers can then help assess the current sources of income a client has and evaluate how much income those assets will provide and for how long.”

Depending on the retiree’s needs and current retirement income situation, an adviser may also want to consider speaking with them about potentially adding other income sources to their portfolio such as an annuity, according to Fiedler.

Financial Concerns

Inflation was the leading financial concern for women, both retired and non-retired, according to the research. Among non-retired women, 52% identified inflation as their top stressor, followed by worries about retiring comfortably (34%) and running out of money in retirement (30%).

These concerns closely mirrored those of retired women, 57% of whom also cited inflation as their primary financial challenge. Running out of money in retirement ranked second for retired women at 39%, underscoring shared anxieties across both groups about the financial demands of a longer, costlier retirement.

“Women have made significant strides in career advancement, educational attainment, and financial well-being,” says Fiedler. “But for retired women, the realities of their working years may have been very different, possibly faced with larger pay gaps or career interruptions due to caregiving responsibilities.”

Corebridge’s research found that 56% of retired women took at least a month out of work to care for someone or provided care for someone while still working. Fiedler says these are factors that may have impeded the ability to prepare for retirement.

Women in Retirement

The survey found that only 19% of retired women report retirement to be exactly as they envisioned, while 26% say it is not at all what they expected. Cost emerged as the most significant surprise, with half of retired women finding retirement more expensive than anticipated. Additionally, 46% retired earlier than planned, which likely compounded financial challenges.

“But it’s essential to remember that no matter where someone is in their financial journey, it’s never too late for them to take action,” says Fiedler. 

Among retired women, the financial step most credited with successful retirement preparation is working with a financial professional, as reported by 35% of respondents. However, 38% of these women wished they had started this relationship earlier. Other key steps included saving early and maximizing contributions to employer retirement savings plans. The nationwide study surveyed 4,023 adults, including 2,574 women, between May 2 and May 8.