Only 1 in 5 Women ‘Very Confident’ They Can Retire with Secure Lifestyle

Despite being better educated and enjoying improved career opportunities, women still lag behind men when it comes to saving and planning for retirement, according to a new study that examines the retirement preparedness of women workers.

In 23 Facts About Women's Retirement Outlook, the study by the Transamerica Center for Retirement Studies (TCRS) in collaboration with Transamerica Institute reveals that only 19% of women workers are “very” confident they will be able to fully retire with a comfortable lifestyle.

Mind you, the findings may not be quite as dire as the headline suggests, as another 41% of women report that they are “somewhat” confident, resulting in a total 60% who are confident they will be able to fully retire with a comfortable lifestyle. Still, women’s retirement confidence lags behind that of the 73% of men who are either very confident (26%) or somewhat confident (47%).

“Today's women are more educated and enjoy unimaginable career opportunities than previous generations. Yet, despite these advancements, women continue to be at greater risk than men of not achieving a financially secure retirement,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS.

Part of the issue, according to Collinson, is that the gender pay gap leaves women with less income available to save. Moreover, women are more likely to take time out of the workforce for parenting and caregiving. “These factors impair a woman's lifetime earnings, retirement savings, and government and employer benefits. On top of these factors, statistically, women live longer than men, so they have an even greater need to save for older age,” she further notes.

23 Facts About Women's Retirement Outlook

As part of the research, TCRS provides a list of 23 facts outlining key indicators and contributing factors to the retirement outlook of women workers.

1. More than half of women (57%) feel they don’t have enough income to save for retirement. 
2. Saving for retirement (53%), building emergency savings (44%), paying off credit card debt (43%), and just getting by to cover basic living expenses (37%) are women’s most often-cited financial priorities.  
3. Women have only $2,400 in total household emergency savings (median). 
4. Only 19% of women are “very confident” that they will be able to fully retire with a comfortable lifestyle. 
5. Most women (75%) are saving for retirement at work and/or outside the workplace. 
6. Women who work full-time (79%) are more likely to be offered a 401(k) or similar employee-funded retirement plan than women who work part-time (45%).  
7. Among women offered a 401(k) or similar plan, 76% participate, contributing 10% (median) of their salary. 
8. 36% of women have taken a loan, early withdrawal, and/or hardship withdrawal from their 401(k) or similar plan or IRA. 
9. Women estimate they will need to save $500,000 (median) to feel financially secure in retirement, but more than half (52%) say they “guessed” their savings needs.  
10. Women have $44,000 in total household retirement savings (estimated median). 
11. 27% of women expect Social Security to be their primary source of retirement income. 
12. 76% of women are concerned that Social Security will not be there for them. 
13. 41% of women are currently, or have previously, served as caregivers during their working careers. Among them, more than 8 in 10 (84%) made work adjustments because of caregiving, such as missing work (37%). 
14. Less than one in four women (24%) have a financial strategy for retirement in the form of a written plan.  
15. Only 32% of women use a professional financial advisor. 
16. Fewer than half of women (42%) are aware of the Saver’s Credit.  
17. Few women (20%) frequently discuss saving, investing, and planning for retirement with family and close friends. 
18. Women are planning to live to age 89 (median) and 13% plan to live to age 100-plus; 40% said they are “not sure” of the age they are planning to live, which is a reasonable answer but not useful for financial planning.  
19. Women dream of an active retirement including travel (65%), spending more time with family and friends (57%), pursuing hobbies (44%), working (27%), volunteering (22%), and taking care of grandchildren (21%).  
20. 55% of women expect to retire after age 65 or do not plan to retire, and 53% plan to work in retirement. 
21. Among women who plan to work past age 65 and/or in retirement, more cite financial reasons (84%) than healthy-aging reasons (75%). 
22. Many women could be more proactive about ensuring they can work as long as they want and need; just 59% say they are staying healthy, and 50% are keeping their job skills up to date.  
23. Women could be doing more to protect their long-term health; roughly half indicate they are eating healthy (52%), exercising regularly (52%), socializing with family and friends (52%), and getting plenty of rest (49%).  

“Everyone must play a role in improving women's retirement security so that all women can retire with dignity,” Collinson further emphasizes. To that end, she suggests that policymakers can help by addressing structural impediments, employers can enhance their business practices and benefit offerings to be more inclusive of women's needs, women can further engage in financial planning, and men can be greater advocates and allies.

The findings are based on a 22-minute online survey conducted within the U.S. by The Harris Poll on behalf of Transamerica Institute and TCRS between Nov. 8 and Dec. 13, 2022, among a nationally representative sample of 5,725 U.S. adults who work full- or part-time at a for-profit company.