Half (51 per cent) of women in the U.S. aged 65 who are entering their peak retirement years have less than $100,000 saved, with the percentage rising (67 per cent) among single women, according to a new survey by Artemis Strategy Group on behalf of non-profit the Alliance for Lifetime Income.
The survey, which polled more than 2,500 consumers between ages 45 to 75, found the median retirement savings for women who are also peak baby boomers is $185,000 compared to $269,000 for men in the same age group. Indeed, 48 per cent of boomer men have defined contribution plans with accounts worth $99,000. By contrast, a similar percentage (41 per cent) of women with DC plan assets have accounts worth $60,000.
According to the survey, by 2030, 48,400 peak boomers with few assets and very low incomes will qualify for Supplemental Security Income benefits (average $6,900 per year), among which more than two-thirds (69 per cent) will be women. The median Social Security benefit for retired boomer women will be $21,400 versus $28,400 for retired boomer men, a disparity of one-third.
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Women respondents were less confident than men about various aspects of creating their retirement income. Indeed, the survey found just 39 per cent of women respondents understand the role annuities play in a retirement plan, compared with more than half (52 per cent) of men respondents.
Women were also more likely than men to say “protection” is very important to them when planning for retirement (76 per cent) compared to men (67 per cent). Nearly all (92 per cent) of women at peak retirement age said it’s “very important” financial advisors identify ways to protect their assets, compared to 82 per cent of men who said the same.
Nearly half (48 per cent) of women also said they’re worried about making complicated financial decisions due to potential cognitive decline, compared to 36 per cent of men who shared the same worry.
Read: 57% of U.S. women say they don’t make enough to save for retirement: survey