Women Struggle Saving for Retirement While Handling Finances
Women are likelier to shoulder financial costs and emergency expenses while also saving for retirement, shows new research from The Standard.
At the same time, results from the survey revealed a 13-point margin between men’s and women’s confidence in saving for retirement. As women were likelier to prioritize emergency savings, paying off debt and managing day to day finances, many disclosed feeling forced to delay or reduce retirement contributions.
This behavior, likely as a result of factors like ongoing gender pay gaps and caregiving costs, has led to a decrease in women saving for retirement compared to men. According to the findings, women are more likely than men to carry medical debt due to child-birth related expenses and overall lower average incomes.
As a result, only 40% of women in The Standard’s research believe they are currently saving enough for retirement compared to 53% of men.
The study highlights the importance of workplace voluntary and disability benefits and how offering these features could provide financial security for women who need on these tools. “Meeting women where they are regarding workplace benefits means portfolio offerings must have enough range and flexibility to accommodate the varying financial goals of all employee populations,” said Melissa Oliver‑Janiak, vice president of Total Rewards and HR Mergers and Acquisition Strategy at The Standard, in a statement.
Additional considerations for plan sponsors include engaging employees in communications and conversations about financial priorities, and providing tools, education, and plan design centered around retirement readiness. Strengthening financial wellbeing programs can also lead to added confidence, The Standard reports.
“When women feel financially secure today, they’re better able to plan for tomorrow. Employers who invest in benefits that meet women’s real‑world needs will see stronger retention, higher morale and a more resilient workforce,” added Oliver-Janiak.
The Standard’s research fielded responses from 3,468 women and 1,523 men between the ages of 18 to 70.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.