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Women Far Behind in Retirement Planning

July 12, 2012 (PLANSPONSOR.com) - Younger women and Baby Boomer women are not prepared for retirement, a survey found.

By Corie Russell editors@plansponsor.com | July 12, 2012
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According to Prudential Financial’s survey, “Financial Experience & Behaviors Among Women,” Baby Boomer women and those younger than 35 say they are far behind or have not started planning for retirement.

On a positive note, women younger than 35 have well-defined goals for their financial future. Although they frequently identify themselves as investment beginners and are less likely to say they feel well-prepared to make wise financial decisions than female Baby Boomers, they are the most likely to see financial decision-making as their own responsibility.

They also feel empowered to participate in or make decisions on their own and show a strong interest in receiving financial advice. Even so, their perceptions about retirement readiness remain similar to Baby Boomer women.  

The survey indicates that women who work with a financial professional feel more confident about not outliving their savings in retirement and maintaining their standard of living than others. While women are relatively confident in their ability to achieve financial goals such as buying a house and reducing debt, they are less confident about having enough money in retirement and protecting investments from volatility.

“The whole confidence gap is really what stood out [in the survey],” Deborah Owens, CEO of Owens Media Group, said during Prudential’s press event about the study. “I really look at that confidence gap as a knowledge gap, too.”

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