By Jorge Antonio Vázquez Buendía
01 Apr 2024, 08:00 AM EDT
Research from the Nationwide Retirement Institute (NRI) revealed a gender disparity in retirement confidence and preparedness among current savers in the U.S. workplace, with women reporting more challenges than their male colleagues.
NRI’s In-Plan Protected Retirement survey of 1,200 participants in employer-sponsored retirement plans found that one in four women (23%) feel they are “on the wrong track” toward retirement, compared to 15% of men, and 41% have a negative opinion or neutral perspective on their retirement planning compared to only 29% of men.
This gender disparity is further demonstrated by the fact that women are less likely than men to have reached key savings milestones, such as saving enough for an emergency fund or adjusting their retirement investment allocations.
The report found that women are more likely to worry about a recession or economic slowdown and the impacts of rising costs or market volatility on their retirement savings.
As a result, more than half of women are worried about outliving their income in retirement (52%). However, only 13% have diversified their investment portfolio and only 15% sought other investment options that offer protection during economic uncertainty.
In a year when more Americans than ever reach age 65, lingering economic concerns are clouding the retirement prospects of many workers.
“Women actively participate in their employer-sponsored retirement plans alongside their male counterparts, but they also face a variety of challenges that can make navigating their retirement journey more complex,” said Cathy Marasco, Protected Retirement Leader at Nationwide Retirement Solutions.
“Women are likely to live longer in retirement, so it is understandable that fear of outliving their income is a source of anxiety. The good news is that there are new solutions available for employers to help plan participants address income concerns in retirement,” Marasco added.
Research shows that pension holders have more financial confidence and less worry about outliving their money than those without pensions.
For more information about Nationwide’s protected retirement solutions for financial professionals and plan sponsors, go here. For more details on the survey results, go here.
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