A LIMRA Secure Retirement Institute survey reveals that among consumers aged 50 -75 with $100,000 or more in household income, women are more likely than men to be concerned about running out of money in retirement (46 percent vs. 35 percent).
As more workers are expected to fund their own retirement, women may be expressing concern for several valid reasons. The latest Bureau of Labor Statistics numbers show that as of the first quarter, 2014, the median wage for women is 83 percent that of men. Over a career, a lower salary, combined with breaks in employment to care for children and other family members, often leads to less retirement savings as well as lower Social Security income. These issues, as well as the fact that women usually live longer in retirement than men, compounds the challenges women face as they plan for retirement.
The good news, according to the LIMRA Secure Retirement Institute, is that women see value in getting professional advice, which could help them with investment and savings strategies to maximize their retirement assets.
Nearly 7 in 10 women believe financial advisors provide value beyond what they could achieve on their own, while only half of the men surveyed agreed with that statement. More women than men also said they trust advice from a financial professional and a majority of the women said that financial advice is worth the money. (See Graphic)
Saving for retirement is a challenge for both women and men but women often face greater obstacles throughout their working years, when professional advice can be invaluable. Working with a financial advisor can give women the strategies they need to ensure they have the financial wherewithal to achieve a secure retirement.
By Ayo Mseka