According to the survey, single women estimate needing a median amount of $500,000 by the time they reach retirement – an amount nearly two-thirds of respondents admitted was simply a guess. M ore than one-third report that they have saved less than $25,000 for retirement, while only one in 10 reports having saved more than $100,000, according to a Transamerica announcement. Only 6% completed a worksheet or calculation, or received their estimate from a financial adviser.
The survey found that single women most frequently cite 401(k) plans and IRAs as their expected primary source of income in retirement, yet only 69% of single women who work full time report that their current employer offers them a 401(k) plan. This can be explained, in part, by the fact that a majority of single women (56%) would prefer a job with a higher salary over one with excellent retirement benefits.
For single women who work part time, the picture is even gloomier: The survey found that 64% of them have no retirement benefits offered to them by their employer, the news release said. As for single women who have access to a 401(k) or a similar employer plan, 70% participate with a median contribution rate of 6%.
“ Too many single women are still not saving for retirement and those who are should be saving much more, “ says Catherine Collinson, president of the Transamerica Center for Retirement Studies, in the news release. “ For most single women, their current savings rates are unlikely to build a large enough retirement nest egg. It ‘ s important for everyone to conduct a proper analysis to estimate their retirement needs and to create a plan that will help get them there. “
Single women face competing financial priorities, which influence their ability to save for retirement. The majority of single women cite either “ just getting by “ (33%) or “ paying off debt “ (30%) as their greatest financial priority while only 17% cite “ saving for retirement,” Transamerica said.
Further, the survey found that single women frequently (46%) cite “ outliving their money “ as one of their greatest fears about retirement.