Just 12 percent of women in the workforce are very confident they will be able to fully retire with a lifestyle they consider comfortable, according to a study by the Transamerica Center for Retirement Studies. But there are things women can do to take control of their lives after they stop working.
The firm surveyed more than 6,300 workers, 3,917 of whom were women, for the report, titled “Here and Now: How Women Can Take Control of Their Retirement.”
“Despite the progress made in recent decades in terms of higher levels of educational attainment and career opportunities, women continue to encounter financial risks that put them at a distinct disadvantage compared to men with regard to retirement security,” said Catherine Collinson, president of Transamerica Center for Retirement Studies.
“Without a doubt, saving and planning for a financially secure retirement can be daunting. However, our survey findings identify opportunities that are within reach and can help women take control of their retirement,” she said.
The firm says that women need to frequently talk about their retirement issues, such as investing, planning and saving, with friends and loved ones. “An open dialogue with trusted loved ones can inspire new ideas, identify opportunities, encourage action and set expectations,” the report said.
Only 7 percent of those surveyed had used a retirement calculator or completed a worksheet to determine their needs. “Stop guessing and start calculating retirement savings needs,” Transamerica says.
Transamerica also said women need to create a written strategy for retirement so they can know their needs. Only 11 percent of those surveyed had a written retirement strategy. Another 44 percent said they have one, but that it is not written down; 45 percent have no strategy at all.
Women also need to be familiar with their spouses’ or partners’ retirement plans, which goes back to the idea of having family conversations about money and retirement.
Many baby boomers are either thinking about working past age 65 or already are. Women need to keep up their job skills, network and maintain their health in order to have that as an option, the report said.
“Women have made tremendous progress in recent decades,” Collinson said. “Yet there is more work to be done in terms of overcoming inequalities and helping women achieve long-term financial security. This endeavor must be a shared responsibility among individuals, employers, industry and policymakers.”