That’s the good news. The bad news is that on the issue of retirement, women aren’t taking the same aggressive stance they are in the workplace. A 2011 study from Wells Fargo (Stock Quote: WFC) is the bearer of bad news on that front.
- Gen X Must Step Up Its Retirement Savings
- Two-Thirds of Gen Y Would Change Jobs for Better Retirement Benefits
- Retiring And No Debt Is the American Dream, Consumers Say
- Maximizing Social Security Benefits May Hinge on a Temporary Reverse Mortgage
- Public Policy Changes That Could Derail Your Retirement Plan
According to the study, only 54% of women claim they have enough money saved for retirement, compared to 62% of men. Also, women are less likely to have a pension from their jobs, and are less likely to believe that Social Security will be there for them in retirement. Wells Fargo also says that the median retirement savings average for women is only $20,000.
“Women hold more than half of high-paying management and professional positions in the U.S. and three women are in college now for every two men. But when it comes to retirement, they lag in their confidence about how to prepare for this phase in life, and they are less likely to see themselves in the driver’s seat,” said Karen Wimbish, director of retail retirement for Wells Fargo, in a statement. “We’d like to see women make the same kind of progress in planning and saving for retirement that they’ve made in so many other spheres of life.”
Another study by Los Angeles-based Transamerica confirms the findings, with only 8% of 1,800 women surveyed saying they “strongly agree” that they are accumulating enough cash for retirement. Researchers at Transamerica say a big part of the reason that women may be lagging in planning for retirement has to do with the sacrifices women historically make on their career path.
“Historically, women are more likely than men to take time out of the workforce for parenting and caregiver responsibilities. Over the course of a woman’s career, these factors translate to reduced earnings and lower long-term retirement savings,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies. “An important first step toward helping women build retirement confidence is to raise awareness about the issues and then highlight ways that women can take greater control of their financial future.”