In the midst of market uncertainty and inflation, women who seek a financial professional are likelier to be confident and feel prepared for retirement, finds a new study by LIMRA.
According to the report, 40% of women working with a financial professional report feeling very prepared for retirement, compared with just 27% of women who do not work with one. The study surveyed Americans ages 40 to 85 with at least $100,000 in household investable assets.
LIMRA research reveals that working with a financial professional increased the likelihood that consumers will complete retirement planning activities. Fifty-three percent of women who work with a financial professional were likelier to calculate the amount of assets and investments available to spend in retirement, compared to 44% of women who forego working with an advisor.
Similarly, 50% of women who meet with an advisor were likelier to know how long their assets and investments will last in retirement, relative to 36% of women who choose not to work with an advisor.
LIMRA’s research also finds women working with an advisor are more than twice as likely to have a formal written retirement plan as those who are unadvised (25% vs. 10%).
Overall, women’s interest in guaranteed lifetime income increased 63% over the past five years, with a significant jump over the past year as inflation and economic uncertainty grew. LIMRA research shows women who work with a financial professional are more likely to be interested in purchasing an annuity. More than half of women who work with a financial professional (52%) said they were interested in converting a portion of their assets into a lifetime-guaranteed annuity in retirement, compared with 44% of women who don’t work with an advisor.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
