If you have doubts you won't be able to maintain your lifestyle during retirement, you're not alone. Our fifth biennial study, "Financial Experience and Behaviors Among Women," shows that although financial security in retirement is a priority for 80 percent of the women surveyed, only 20 percent feel "very confident" about achieving their goals. We call this difference the "confidence gap."
Whether they’re Millennials, GenXers, Boomers, or Matures, American women are actively considering their future retirement and financial security—countering conventional wisdom that retirement is an "over 50" issue.
Fear of becoming a financial burden to their families affects women of all ages. And while eight of 10 women older than Baby Boomers are not confident their retirement savings will last their lifetime, that number is not significantly different among women ages 25 to 61.
The survey also shows that women who feel better prepared to make sound financial decisions are closer to achieving their retirement savings goals. But 50 percent are unfamiliar with basic financial and investment products.
How do the women questioned in our survey increase their knowledge? More than half rely on friends and family, a financial advisor, or the Internet for information that educates them and shapes their decisions.
Here are just a few steps you can take to become more confident about your financial future:
- Increase your understanding of various types of investment vehicles, such as mutual funds, annuities, and bonds.
- Contribute as much as you can, as soon as you can, to a workplace retirement savings plan or an Individual Retirement Account. Women 50 and older can make "catch up" contributions to get closer to achieving their financial objectives.
- Find a financial advisor you trust to guide you toward financial security.
You have the resources and the ability to gain more self-assurance about reaching your retirement goals. If you’re determined, you can make it happen.
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