Over Half of Women Nearing Retirement Age
Have Less Than $100K in
Savings, Exposing a Critical Gender
Divide
WASHINGTON, July 16,
2024 /PRNewswire/ -- An alarming 51% of women in the
Peak 65® Zone have less than $100,000 in assets, and among single women in
this demographic, the number jumps to 67% who have less than
$100,000 in assets for retirement.
More than 4.1 million Americans will turn 65 this year, marking the
beginning of what the Alliance calls the Peak 65 Zone, a historic
surge that will continue each year through 2027. These
statistics highlight a growing financial crisis among
retirement-age women.
Over Half of Women Nearing Retirement Age
Have Less Than $100K in Savings,
Exposing a Critical Gender Divide
The Alliance for Lifetime Income's 2024 Protected Retirement
Income and Planning (PRIP) annual study, now in its sixth year,
examines the attitudes and behaviors toward retirement savings of
Americans ages 61 to 65, known as Peak 65 consumers. PRIP is the
only research of its kind that simultaneously surveys both
consumers and financial advisors. The second chapter of the report,
released today, highlights the gender divide's significant role in
the retirement crisis.
"The long-running effects of women earning less and saving less
during their working years are now becoming magnified and felt by
millions of Peak 65 women entering retirement," said Jean Statler, CEO of the Alliance for Lifetime
Income. "Women also live much longer and receive less protected
income from Social Security on average, making them especially
vulnerable to outliving their savings. It's no wonder that this
year's study shows that women overwhelmingly say protection is very
important to them when planning for retirement. Annuities
offer a lifeline by guaranteeing income for life, empowering women
to navigate retirement with confidence and dignity."
Key Chapter 2 PRIP Findings:
- 58% of Peak 65 women are married or living with a partner,
while 42% are single, divorced, separated, or widowed.
- Single/divorced/widowed women are more vulnerable, with 67%
having less than $100,000 in
household assets.
- Women are less confident than men about various aspects of
creating their retirement income.
- Women are more likely than men to say "protection" is very
important to them when planning for retirement (76%) compared to
men (67%).
- Peak 65 women who work with a financial professional are more
interested in asset protection than men. Over 9 in 10 (92%) of Peak
65 women say it is "very important" that financial advisors
identify ways to protect their assets compared to 82% of Peak 65
men.
- 48% of women are worried about making complicated financial
decisions due to potential cognitive decline compared to 36% of
men.
- Only 39% of women understand the role annuities play in a
retirement plan compared with 52% of men.
"Women are at high risk of financial insecurity in retirement,"
said Jean Chatzky, Education Fellow
with the Alliance's Retirement Income Institute, and CEO of
HerMoney. "This latest PRIP report shows how much women value
protected income -- essentially a paycheck for life -- that tools
like annuities can provide in retirement. Unfortunately,
there's a huge knowledge gap preventing women from accessing these
tools in enough time to make a difference."
PRIP findings align with 2024 Peak Boomers Economic Impact
Study which shows large disparities between Peak Boomer women and
men.
This second chapter of the 2024 PRIP study aligns with
findings from the Peak Boomers Economic Impact Study, a definitive
economic study released in April 2024
and commissioned by the Alliance's Retirement Income Institute.
Authored by Robert J. Shapiro,
former Under Secretary of Commerce for Economic Affairs, the study
examines the economic impact of Peak 65 consumers and finds that
two-thirds of Peak 65 Boomers will struggle to maintain their
lifestyles in retirement based on their assets and their likelihood
of living up to 20 or more years in retirement.
- Median retirement savings for Peak Boomer women is $185,000 versus $269,000 for Peak Boomer men.
- The median Social Security benefit for retired Peak Boomer
women will be $21,400 versus
$28,400 for Peak Boomer men, a
disparity of one-third.
- 48% of male Peak Boomers have defined contribution (DC) plans
with accounts worth $99,000 versus
41% of women with DC plan assets of $60,000.
- By 2030, 48,400 peak boomers with few assets and very low
incomes will qualify for SSI benefits (average $6,900 per year), and 69% will be women versus
31% men.
"There's a big disconnect between the four decades of saving
that women know we have to do and using those accumulated assets to
provide for the rest of our lives. It's time for planners,
retirement plan providers, and other educators to make decumulation
-- making the money last -- part of the conversation,"
said Chatzky.
The PRIP online survey of consumers was conducted by Artemis
Strategy Group from February 15 to March 2,
2024. The 2,516 consumers surveyed are ages 45 to 75, of
which 505 are an oversample of Peak 65 consumers ages 61 to 65, for
a total of 886 Peak 65 consumers. Data is weighted to align with
the population on age, income by gender, race/Hispanic ethnicity,
region, work and retirement status, assets, and education. From
February 12 to March 4, 2024, PRIP
2024 also surveyed 508 financial professionals who conduct
retirement planning for individual clients.
About the Alliance for Lifetime Income
The Alliance
for Lifetime Income (ALI) is a non-profit 501(c)(6) consumer
education organization based in Washington, D.C., that creates
awareness and educates Americans about the value and importance of
having protected income in retirement. Our vision is for a country
where no American has to face the prospect of running out of money
in retirement. The Alliance provides consumers and financial
professionals with unique educational resources and interactive
tools to use in building retirement income strategies and plans. We
believe annuities – one of only three sources of protected lifetime
income – can be an important part of the solution for retirement
security in America. The Alliance's Retirement Income Institute
houses the leading retirement scholars and experts who create
evidence-based research and analysis, with practical ideas and
actions to help protect retirees. For more information about the
Alliance, visit www.protectedincome.org.
About Cannex
CANNEX Financial Exchanges Ltd. supports
the exchange of pricing and data for annuities and bank products,
including term deposits and guaranteed interest contracts (GICs).
The firm's data gives financial institutions the ability to
evaluate and compare various guarantees associated with savings and
retirement products. For more information about CANNEX, visit
www.cannex.com.
Contact: Suzy Wagner
(703) 899-3427
Suzy@alincome.org
View original content to download
multimedia:https://www.prnewswire.com/news-releases/new-study-highlights-urgent-financial-risks-for-women-entering-peak-retirement-years-302197923.html
SOURCE Alliance for Lifetime Income