June 14, 2012 (PLANSPONSOR.com) - Women’s confidence in their retirement preparedness has slipped and they are still behind men in terms of how much they are saving for retirement.
However, the gender gap in retirement planning is smaller than most other areas, with virtually no gap between men and women with respect to participating in employer-sponsored plans or IRAs, according to research from Financial Finesse.
Ninety-one percent of women reported they participate in their employer-sponsored retirement plan, compared to 92% of men, and 26% of women said they contribute to a traditional or Roth IRA, versus 27% of men. In addition, 87% of men and 79% of women indicated they are capturing the maximum employer match offered by their employer plans.
However, only 12% of women said they are on target to replace 80% of their income in retirement, compared to 22% of men.
While nine in ten (89%) men reported they had general investment knowledge, two-thirds (66%) of women said the same. Only 29% of women feel their investments are allocated appropriately, versus 45% of men.
Financial Finesse’s research is primarily based on tracking employees’ most pressing financial concerns through their usage of its financial education services. The complete research report is here.