Bad news on the retirement front.
While Middle-American men and women share similar feelings of financial security, women are more likely to worry about their personal finances. With good reason: they are three times more likely to say they cannot afford to save for retirement.
Four in 10 women and 35 percent of men with annual household incomes of between $35,000 and $150,000 report feeling “not very” or “not at all” financially secure, according to the 2017 MassMutual Middle America Men & Women Finances Study.
One in two women say they worry at least once a week about money compared to 45 percent of men, the study finds.
Women are also more likely to bring those worries to work, costing employers in terms of distraction and productivity, while men are twice as likely to say they never worry about money.
He Saves, She Saves
Men and women differ in their approaches to saving money, especially when it comes to retirement.
Both genders overwhelmingly agree they are not saving enough for retirement but men tend to be more confident when it comes to being financially secure when they eventually retire.
Forty-four percent of women in Middle America report they cannot afford to save for retirement compared to 14 percent of men. One in four women says they don’t save because their employer either doesn’t match retirement plan contributions or doesn’t offer a compelling match. Twenty-one percent of men say the same, the study finds.
Only two in 10 women reports having $10,000 or more in savings for financial emergencies compared to three in 10 men, the study reports. Seventy-three percent of women who are not saving for anything other than retirement say all of their income goes towards monthly expenses and bills; 62 percent of men say the same.
Women are also less likely than men to use any extra money to pay off debt.
“Men are more likely to ‘pay themselves’ first, an effective habit for saving money,” Teresa Hassara with MassMutual’s Workplace Solutions, said in a statement. “While educating women about effective savings strategies can help, women often face bigger challenges because they are typically paid less than men for the same work.”
He Worries, She Worries
Women tend to worry more than men about several different aspects of life, especially politics, money and family.
Those who worry about money at least once a week report negative implications for their health and well-being, especially women.
Women are more likely to blame financial concerns for stress, hurting their social life, affecting the frequency or quality of their family’s medical or dental care and negatively impacting their marriage or romantic relationship.
Benefits, Education Help
A majority of both men and women say obtaining employee benefits through their employer contributes to feelings of greater financial security, the study reports. Both genders expressed strong interest in employer-provided financial education programs.