Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
Male and female gender signs

Retirement Planning > Saving for Retirement

Women Lag Men in Retirement Confidence, Financial Literacy: BMO Survey

By Michael S. Fischer

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • A new survey finds that only about half of women feel confident about retiring at their target age compared to two-thirds of men.
  • Women were far more likely than men to say they did not have a financial plan.
  • The survey also found a large gap in how women and men are educated about personal finance from a young age.

Only 53% of women say they feel financially confident about retiring at their target age, compared with 66% of men, according to the BMO Real Financial Progress Index, an indicator of how consumers feel about their personal finances and whether they are making financial progress.

In addition, 74% of women lack a plan to reach to reach their financial goals, compared with 58% of men with no plan. This was the biggest gender gap of any issue reported by study participants.

Ipsos conducted the research in the U.S. from Jan. 16 to Feb. 12 among 3,401 adults. BMO released the findings on Tuesday, the day before International Women’s Day.

The new research comes as retirement worries are trending upward across the country, even among those working with a financial advisor.

Women who are not confident in their retirement plans said they needed to take several actions. Saving more topped the list, followed by earning more, investing and limiting spending.

Despite this, 74% of women said they feel in control of their finances, just 5 percentage points lower than the share of men who said this.

BMO noted that in the U.S., women earn 83 cents for every dollar men earn, which adds up to $10,435 a year or $417,400 at the end of an average career and affects the amount of money the average woman can save and invest for retirement.

Adding to women’s financial stress are fear of unknown expenses, reported by 86% of women surveyed, and anxiety over keeping up with monthly bills, reported by 65%.

“It’s no surprise that women, many of whom left the workforce during the pandemic to care for children or pull from savings to spend on childcare, are now feeling the added pressure to save and recoup what they may have been able to put aside for retirement,” Tina DeGustino, BMO’s director of consumer strategy, U.S. personal and business banking, said in a statement. “Real financial progress is made by implementing both short- and long-term planning.”

Financial Literacy Gender Gap

The BMO survey also found a large gap in how women and men report being educated about personal finance from a young age. Fifty-seven percent of women said they did not have family conversations around budgeting or financial planning while growing up, compared with 47% of their male counterparts.

The survey found other instances in which women lag men financially:

  • 28% of women work with a financial advisor versus 38% of men.
  • 21% of women use free digital tools versus 30% of men.
  • 12% of women rely on tools or resources from banks versus 20% of men.

Asked about financial literacy, 79% of women said they would like additional help. Fifty-three percent want resources and tools to help them save money, 36% want retirement strategies and 28% want help with budgeting.

Another resource to help women reach their financial goals, according to recent research, is other women.

“Despite the progress women have made the last several decades, our survey proves just how real the gender gap is in essentially every aspect of finances — from retirement savings to planning to financial literacy,” DeGustino said.

She said women can take control of their finances by evaluating their budgets, adjusting spending habits accordingly and strongly committing to a savings and retirement plan.

(Image: Adobe)

Michael S. Fischer

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.