Fewer women than men actively engage in planning for retirement, though women are more concerned than men about the retirement risks they face, according to a new report from LIMRA.
The survey reveals that only a third of women are actively involved in monitoring and managing their retirement savings, compared with nearly half of men (46 percent). Two-thirds of women are not confident that they will be able to live their chosen retirement lifestyle, yet only 26 percent of women spend time investigating financial products that could help them.
"We know from earlier studies that working women, on average, have accumulated 40 percent less than men for retirement, which was confirmed again in this study," said Cecilia Shiner, senior analyst, LIMRA retirement research. "Even though six in 10 women are concerned they aren't saving enough to last throughout their retirement, we see few women taking steps to mitigate for this risk."
Shiner further notes that just one-third (33 percent) of women believe they are knowledgeable about financial products and services, compared with 55 percent of men.
“Our research shows that when consumers feel more knowledgeable about financial products, they are more likely to be engaged,” Shiner says. “Advisors and companies should be developing new strategies to educate women and increase their engagement level."
Of the women who say they’re knowledgeable about financial products and services, nearly twice as many (60 percent) are actively involved in monitoring and managing their retirement savings, the report reveals. And more than half of these women are confident that they will be able to achieve the retirement lifestyle they want.
"Engaging and educating women should be a top priority of our industry," says Alison Salka, LIMRA corporate vice president and director of Retirement Research. "There are approximately 16.6 million women within 10 years of retirement (age 55 to 70 and not yet retired).
“Our research reveals that many of them are financially unprepared for retirement and because of their lack of knowledge and understanding of our products and services, are not taking the steps to reduce the risk that they run out of money in retirement," Salka adds.