A new study spotlights the uphill climb females and their financial advisors face while planning for retirement.
Just 18 percent of retirement-age women are informed on how to make a nest egg last in retirement (compared to 35 percent of similarly-aged men), according to The American College of Financial Services’ 2017 RICP Retirement Income Literacy Gender Differences Report.
“Even more worrisome” is that despite low retirement literacy, the majority of women (55 percent) are still extremely confident that they and their spouses would have enough money to retire comfortably, the college noted.
“Women face considerable challenges when it comes to preparing for retirement, and lacking financial literacy certainly does not help the cause,” said Jocelyn Wright, assistant professor of women’s studies at The American College. “This is a problem, especially when a female at age 65 can expect to live another 20 years on average, two years longer than the average man. With this in mind, women cannot depend on their spouse to hold the keys to their retirement.
“It’s time to get smart on how to navigate this complex and extremely important stage of life,” Wright said.
‘Some Distinct Differences’
How can retirement-minded women, ideally working hand-in-hand with a trusted financial professional, up their retirement savings game? With some discipline, increased awareness, and a dose of creativity, experts say.
“While all investors desire to grow their wealth, there are some distinct differences in how many women approach investing,” said Min Zhang, CEO and co-founder of Totum Wealth, a provider of digital client engagement and institutional-quality analytics for financial advisors.
To begin with, women are often less aggressive than men when it comes to investing, Zhang pointed out.