Women Financially Unprepared For Retirement

April 20, 2001 (PLANSPONSOR.com) - Women of the Baby Boomer generation have not made adequate preparation for their future financial security, a recent study by Prudential Insurance Company of America finds.

The survey of American Baby Boom Women found that:

  • while 95% of respondents said that knowing how much money it will take to retire is important,
  • and 97% of the group list having enough money at retirement as an important goal,
  • only 70% said that they understand the function of a 401(k) plan,
  • and only 58% assume the responsibility of managing their 401(k) accounts.

On the subject of long term care, of those questioned:

  • over 60% of respondents said that they understand the high costs associated with nursing care,
  • while 50% said they know first-hand about the actual costs of long term care.

In addition,

  • some 70% of those surveyed think that passing money on to their heirs is important,
  • but only 14% have made plans to ensure that their estate is passed on smoothly.

– Camilla Klein editors@plansponsor.com