Just 12 percent of women said that they are “very confident” they will be able to enjoy a comfortable lifestyle in retirement; 42 percent are “somewhat confident” and 30 percent are “not too confident” about that fact. This is according to the Transamerica Center for Retirement Studies’ “16th Annual Transamerica Retirement Survey of American Workers” report, released in March 2016.
The study consisted of a 25-minute online survey that was conducted between February 18 and March 17, 2015 among 4,550 workers, including 2,421 women and 2,129 men. Harris Poll was commissioned to conduct the survey. The respondents were full-time or part-time workers in for-profit companies employing 10 or more people. All were 18 years of age or older.
The survey, which Transamerica has been conducting since 1998, continues to emphasize that women are at a greater risk of not achieving a financially secure retirement compared to men. Among the findings, which you can see in the infographic below, some of the most concerning are:
64 percent of baby boomer women said that they don’t have a backup plan for retirement income if they are unable to work before their planned retirement. (Twenty-one percent said that they do have a plan, and 15 percent said that they weren’t sure.)
35 percent of women said that their primary source of income for covering living expenses after they retire will be 401(k)/403(b)/IRAs, while 29 percent said Social Security, 14 percent said that they would keep working, 11 percent said other savings and investments and five percent said a company-funded pension plan. Additionally, four percent said “other,” one percent said their inheritance and another one percent said home equity.
Social Security is another point of stress for women, with 81 percent saying they are concerned that the program will not be there for them when they are ready to retire.
The survey also found that women’s participation in 401(k) or similar plans lags behind men, with 76 percent of women saying that they participate in the plan, compared to 82 percent of men.
The report details 16 specific findings that apply to women in retirement. We choose only eight of those for our infographic, but you can read the full report on Transamerica’s website here.
(Click on the infographic below to enlarge it.)