Saving for retirement is not a top concern for unmarried women workers, who typically have lower levels of financial assets than their married counterparts and struggle to cover emergency expenses, according to a new survey.
But even if retirement saving was a priority, they would not know where to go for financial advice, according to the Employee Benefit Research Institute (EBRI).
The 2022 Retirement Confidence Survey, which measures attitudes toward, preparations for, and understanding of the various issues surrounding retirement by American workers and retirees, also found that unmarried retirees are more likely to indicate having higher than expected expenses and more likely to have retired earlier than planned.
“The survey results are a real wake-up call when it comes to the situation of unmarried women workers and their retirement prospects. The evidence shows that the current slate of ‘help’ solutions aren’t resonating well enough,” Craig Copeland, director of EBRI wealth benefits research, said in a statement.
The survey found that 58% of divorced women workers and 56% of single, never-married women workers have assets of less than $25,000 compared to 27% of married women workers.
Debt is a major problem for 29% of single, never-married workers and for 20% of divorcees, while 47% of married workers said debt is not a problem. On the other hand, the survey found that retirees are more in control of their debt, as 70% of married retirees said that debt is not a major problem; 59% of divorced retirees said the same and 55% of widowed retirees agreed.
More than any other group, single, never-married women workers were more likely to say that debt impacts their ability to save for retirement and that it also affects their ability to participate in or contribute to an employer’s retirement plan, the study said.
The Covid-19 pandemic disrupted retirement plans and the ability to save for many Americans, but the impact was greater on single, never-married workers, according to the survey, which found that 44% said the pandemic lessened their confidence in their retirement prospects. That compared with 37% for married workers and 36% for divorced workers.
Divorced and single, never-married women workers equally agreed (41%) that retirement savings is not a priority relative to the current needs of their family. But the survey showed that single, never-married women workers are more likely to choose purchasing a home and starting a business as a top-three longer-term financial planning priority when asked about priorities aside from managing day-to-day finances.
In contrast, married and divorced women workers chose saving and investing for retirement among their top three longer-term financial planning priorities. Purchasing life insurance also was a higher priority for divorced workers, the survey showed.