While 61% of men are confident they’ll be financially prepared for retirement, only 44% of women say the same, according to Northwestern Mutual’s 2023 Planning & Progress Study.
The study uncovered significant differences between men and women when it comes to financial security and optimism about the future. Just four in 10 (43%) American women say they feel financially secure, compared to 59% of men. And while more than six in 10 men (63%) believe Social Security will be there when they need it, less than half of women (48%) agree.
“What our research tells us is that there is a gender gap in financial confidence,” said Tim Gerend, Northwestern Mutual’s chief distribution officer, in a statement. “The impact of inflation and the worries people have about recession and retirement are felt unevenly, but they are significant for both women and men.”
The study also found key generational differences among the women surveyed. Facing a shorter road to retirement, Boomer women (63%) were more likely to be confident that Social Security would be there for them, compared to Gen Z (48%), Millennials (39%) and Gen X (37%). However, Gen Z women (59%) were much more likely to believe they’ll be financially prepared for retirement. Generations closer to retirement were not as optimistic: only 48% of Boomers, 38% of Gen X and 43% of Millennials said the same.
Many Gen Z (39%) and Millennial females (32%) believe they’ll live to be 100, while only 23% of Gen X and 20% of Boomers said the same. According to the Centers for Disease Control and Prevention, the average woman currently lives to the age of 79, but the U.S. Census Bureau projects that life expectancy for women will surpass 87 by 2060.
Younger women—79% of Gen Z and 76% of Millennials—were more likely to say their financial planning needs improvement. They were also more likely to prioritize saving money (53% of Gen Z and 48% of Millennials) while older generations were more likely to prioritize paying down debt (67% of Gen X and 79% of Boomers).
“Our data disproves the old myth that ‘young people think they know everything,’” Gerend said. “Coming out of the pandemic, many young Americans saw why financial security is so important. Their passion for continuous improvement is a great sign for these generations and their financial futures.”
Still, almost six in 10 women (58%) don’t have a long-term financial plan that factors in economic ups and downs. Gen X women are particularly under-prepared, with two-thirds—67%—saying they don’t have a plan in place. Additionally, only 38% of Gen X women say they’ll be financially prepared for retirement.
“The bottom line is this: uncertainty about the future is cutting into confidence for many Americans, and that’s where a trusted advisor can help individuals build a plan to help them take control of their financial futures,” Gerend said.
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