Inflation is still impacting women’s finances and retirement security in 2023, and it doesn’t seem like it’ll stop anytime soon.
A new Nationwide Retirement Institute survey of employer-sponsored retirement plan participants and sponsors found that 62% of women expect to retire later than originally planned or not at all due to inflation, compared to 47% of men. Nationwide notes this as a major jump from 2021, when only one in four women anticipated postponing or canceling their retirement due to the COVID-19 pandemic.
The findings aren’t especially surprising, considering that women have oftentimes been the ones forced to sacrifice their careers, savings, and time to caregiving needs. Not only have women delayed their retirement out of fears of the inflationary market, but some are also doing so to help their loved ones through the market environment. Fifteen percent of women said they are suspending their retirement because they want to support a family member or friend during the inflationary period.
“Inflation has made saving for retirement particularly difficult for many Americans, but we are seeing the effects among employer-sponsored retirement plan participants greatest felt by women. In addition to having to reduce their retirement savings, women often have the responsibility of serving as the caretaker for loved ones,” said Amelia Dunlap, vice president, Retirement Solutions Marketing at Nationwide. “I know it can be difficult to navigate the short-term challenges we’re facing with market volatility and rates of inflation. It’s critical that plan sponsors help their employees keep focused on the longer-term view, avoid emotional investing or reactions, and offer solutions that will help them stay on track for their goals.”
Not only is inflation derailing their financial wellness, the stress and setbacks are also impacting their mental wellbeing at a higher rate than past years, finds Nationwide. More than half (56%) of women said they feel worried when thinking about their current retirement plan and financial investments—a 22% uptick since last year—and 57% of those postponing or canceling their retirement due to inflation say it has negatively affected their mental health, compared to 48% of men.
As a result, women are seeking help from financial advisors, professionals, and even features to navigate the murkiness of the market. Nearly all (92%) of plan participants who are women say they may be likely to rollover a portion or all their current retirement plan savings into a guaranteed lifetime income investment option, compared to 83% of men. Additionally, Nationwide reports that 87% of women respondents said they are interested in guaranteed lifetime income investment options that help provide protection from market volatility.
SEE ALSO:
- More Women Report Losing Half of Income During Retirement
- 4 in 10 Women Won’t Retire Until Age 70—If At All
- Recession Fears Not Stopping Women from Maintaining (or Increasing) 401k Contributions
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.
