“There are many barriers that make it more challenging for women to prepare to retire, a reality that we need to overcome if women are to enjoy a secure retirement,” Hassara said. “MassMutual’s study shows that many women are less comfortable with financial issues and money in general, so it’s critical for them to have access to more education, professional financial advice, planning tools and other resources to meet these challenges head on.”
Replacing Income
Nearly a third of both men and women said they will need to replace a minimum of 75 percent of their pre-retirement income when they retire, the study found. Some need even less of their income replaced -- 41 percent of men and 45 percent of women said they will need 50 percent of their pre-retirement income or less, according to the report.
When considering income-replacement requirements, women are more confident than men. Retired women (40 percent) are more likely to say they need to replace less than half of their pre-retirement income to live comfortably than retired men (28 percent).
Evaluating Risk
Pre-retirees are more likely to worry about market volatility and mismanaging their investments than retirees, the study found. Women were more concerned about this aspect of their retirement security than men, according to the study.
Women prioritize minimizing risk over investment growth. However, the majority of women (97 percent), said they want their investments to continue to grow while in retirement. Despite the desire for growth, women are more likely to believe their investments should be significantly more conservative in retirement compared to their male counterparts, according to the report. Women working with a financial advisor said were more likely to say their advisor recommended investing more aggressively, the study found.
MassMutual’s Women’s Retirement Risk Study defines retirement preparedness as the ability for retirees to replace 75 percent of their pre-retirement income from all sources, including retirement savings, Social Security and a pension, if available.