With their longer lifespans and the likelihood of leaving the workforce to care for children or aging parents, women view retirement with more trepidation than men. Numerous studies have revealed those perceptions, underscoring the need for women to focus more on planning for their golden years. Recently, TIAA-CREF undertook a survey that verifies those previous findings.
After polling 1,000 adults nationwide, TIAA-CREF found that 56 percent of women express confidence that they are saving enough for retirement compared to 65 percent of men.
When asked what they would do to confront that issue, the women surveyed indicated they would be more likely to change their savings and spending habits – if they received financial advice. However, nearly half believed that financial guidance would be unaffordable, and one in three said they don’t have the time to seek advice. What would help in getting more women engaged in the retirement planning process? Half of the women surveyed said having financial recommendations created and designed by women would be more valuable to them.
Yet when they obtain the services of a financial advisor, women report being more focused on retirement readiness. Sixty-two percent said they monitor their savings and 58 percent adjust their spending behaviors. Further, nearly 40 percent of women who receive financial advice changed their asset allocation in their retirement plan account.
According to TIAA-CREF, the research highlights the view that time and cost may prevent many women from seeking the potential benefits of financial planning.
Teresa Hassara, executive vice president and head of institutional business at TIAA-CREF, noted in a statement that women are sometimes more focused on “unexpected” (and potentially damaging) financial events such as a divorce or the death of a loved one rather than focusing on more positive experiences like marriage, buying a home or planning for retirement. “Having a financial plan helps [women] have the resources to enjoy happy surprises, not just making it through the challenges,” Hassara stated.