Women are having a significant impact on retirement planning according to new research from the Jean Chatzky-powered HerMoney and non-profit, Alliance for Lifetime Income.
Breaking previous stereotypes, 94% of women who say they are in a relationship confirm that they play a role in the couple’s retirement planning. The same amount report they also play a role in managing investments.
On average, women who share money management duties with their partner take more than half of the responsibility for retirement planning (55%), as well as household finances (55%) and investments (54%). Additionally, nearly half (48%) manage retirement planning for themselves and their partner.
‘…financial advisors who ignore women, do so at their own financial peril’
There also appears to also be a trend toward female independence according to the HerMoney/Alliance State of Women in 2022 study. Only one-third (33%) have completely merged their finances with their significant other. And among women who are currently single, a paltry 2% say they would merge all their money with a spouse or partner in the future.
The report is a positive sign at a time when women continue to lag men in retirement readiness. Recent research from TIAA noted that the Covid-19 pandemic exacerbated the gap between the genders. Only about a third of women (31%) are saving for retirement, compared to 44% of men. More men (35%) are confident that they are on track to live comfortably in retirement without running out of money, compared to just 19% of women. Comparatively, TIAA points out that in its 2013 survey, the confidence level gap was only nine percentage points.
According to Alliance for Lifetime Income CEO Jean Statler, their research clearly dispels the myth that women are somehow absent when it comes to investing and planning for retirement.
“It’s inspiring to see these women take the lead on not only managing their household finances but also investing for the future and planning for retirement,” adding that financial advisors who ignore women, do so “at their own financial peril.”
SEE ALSO:
- 4 Positive Female Financial Trends on International Women’s Day
- Women Significantly Lag Men in Retirement Readiness
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Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.
