“Women generally feel more anxious about their retirement savings, a concern that our report finds often can be warranted,” said Padideh Raphael, global head of third-party distribution at Goldman Sachs Asset Management, in a commentary.
Raphael said that women and employers can benefit from more personalized education and advisory services to address women’s specific retirement savings challenges and needs.
“A financial advisor can help them take a full inventory of what they earn, spend, save and owe and create a plan to define their priorities and move towards the outcomes they seek,” Huisking added.
While 69% of retired women reported that they manage their own retirement savings (only 63% of men said the same), “women expressed quite a bit more discomfort in doing so: 63% reported stress or anxiety, compared to 52% of men, and 31% called it ‘very stressful,’ versus 20% of men,” the study found.
There were a number of topics women said they wanted guidance or advice about. Thirty-four percent said they wanted to understand how long their savings will last, 33% wanted to know how to adjust their retirement savings if they are not on track, 32% said they wanted guidance on a retirement saving strategy (for example, how much to save), and another 32% said they wanted advice about generating retirement income.
“Women tend to focus on the key issues necessary for them to build a secure, successful, long-term retirement,” Tse said. That means advisors serving this market need to be clear and direct and stay focused on women’s core needs.
Despite the added complexity in managing their retirement savings over their careers, women were less likely than men to use outside resources such as employer programs or financial advisors. Yet more women (46%) considered it very or extremely important to receive financial advice (something only 40% of men said). Unfortunately, family members were the top source of advice for women.
“The difference in utilization of these resources highlights the gap in retirement advisors being able to meet women where they are,” said Chris Ceder, senior retirement strategist at Goldman Sachs Asset Management, in a commentary on the study. “Personalized saving and investing strategies can enhance confidence in long-term success, particularly for women.”