A majority of U.S. workers expect they will continue to work after reaching retirement age, with women facing a tougher road due to a vareity of factors, according to a report by the by the Transamerica Center for Retirement Studies and the Transamerica Institute showed.
“American women have historically endured a tenuous retirement outlook due to the gender pay gap and taking time out of the workforce for parenting and caregiving,” the Transamerica Center for Retirement Studies said, adding that the Covid pandemic made the situation worse.
The fact that women see themselves as continuing in the workforce, at least part time, after their traditional retirement date is not all bad news.
“It means they are considering their options and planning for the future. It also could mean they enjoy what they are doing and want to stay active,” Catherine Collinson, CEO and president of the Transamerica Center for Retirement Studies and the Institute, said in an interview.
The survey included nearly 5,500 people almost evenly divided between women and men who were still working full or part time.
Fifty-eight percent of both men and women said they will keep working after retirement. Only 25% of women said they will not work past retirement age, while 28% of men said the same. Baby boomer women had an aversge of $101,000 saved for retirement as of the end of last year, compared to baby boomer men who had $248,000 saved.
Among surveyed women, 41% said they plan to work until 70 years of age or older.
While 81% of the women said they will need to keep working for financial reasons, 76% said they will keep working for “healthy aging” reasons.
Although some progress has been made by women over the years, their retirement outlook remains bleak compared to men, Collinson said. “Financial advisors have an all-important role to play in retirement planning, especially for their female clients,” Collinson said, adding that women are less likely than men to know all of the benefits that are available to them and all of the options they have. “The advisor can help close that gap. Advisors need to be sure they know their women clients and that they talk with the wife when they are advising a couple.”
More than 44% of women are already having trouble making ends meet even in their working years, according to Transamerica, while 57% of women said they lack to resources to save for retirement. Twenty-eight percent of women expect to rely primarily on Social Security in retirement, the study said.
“Women are at even greater risk than men of not achieving a financially secure retirement due to societal headwinds, including the persistency of the gender pay gap, time out of the workforce for parenting and caregiving, and less access to employer and government benefits,” Collinson said. “Emerging from the pandemic, we must spotlight women’s longevity and their retirement insecurities. Now is the time to implement solutions so that all women can retire with dignity.”
“Women workers have weathered a financial storm amid the pandemic. Many experienced negative employment impacts that could jeopardize both their short-term finances and future retirement,” she added.