HOUSTON--(BUSINESS WIRE)--New research from Corebridge Financial digs into the financial realities of retired women compared to what they expected and provides key learnings for future retirees. The study reveals that only 19% of retired women are finding retirement to be exactly what they expected, with 26% going as far to say that retirement is not at all what they expected. The most common retirement surprise is cost, with 50% of retired women saying retirement is more expensive than anticipated, followed by 46% who say they retired earlier than they expected.
While 51% of retired women describe their current financial health as good or very good, 63% wish they began saving earlier, knowing what they know now. Just 27% say they began saving and investing between the ages of 18-29. Taking that a step further, 42% of retired women say they did not begin prioritizing their financial and retirement planning until 41 years old or later, and 20% said they still have not started.
“It’s encouraging to see more than half of retired women feeling good about their current financial situations, but there are clearly some stark differences between expectations for retirement and the realities,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “Women are both starting retirement earlier than expected and managing costs that are higher than anticipated. These dual challenges point to the importance of creating an action plan early in your working years that can help you both build your retirement savings and make them last throughout your retirement.”
Learning from those before you
Less than half (46%) of women in their working years feel like they are on the right track for retirement. For these women, learning from the reflections and insights of those already in retirement can go a long way in helping achieve their own retirement success.
Behind inflation (52%), non-retired women rank the ability to retire comfortably (34%) and running out of money in retirement (30%) as their top financial concerns. These stressors closely align with those of retired women who rank inflation (57%) and running out of money in retirement (39%) as their biggest financial concerns, suggesting the realities of a longer, more expensive retirement.
Among retired women, the number one financial step they say they got right in their preparation for retirement is working with a financial professional, cited by 35% of respondents. Though 38% of retired women working with a financial professional wish they began that relationship sooner. Saving early and contributing more to their employer retirement savings plan rounded out the top three actions retirees felt helped prepare them for retirement.
“Retired women’s reflections are like messages from the future and hopefully inspire younger women to take those crucial first and next steps toward a secure retirement,” Fiedler said. “At the same time, it’s important for those already in retirement to remember that it’s never too late to take action no matter where they are in their financial journey.”
Action steps for retirement savers and retirees
For non-retirees and retirees alike, there can be obstacles to taking action that address financial concerns. Nearly four in ten (37%) non-retired women say that addressing their financial concerns causes them too much stress. Among retired women, 31% say they are not in a position to address their financial concerns.
Despite these challenges, women appear determined to take action. Sixty-one percent of women say they are actively working to address their concerns, including 59% of non-retired women and 65% of retired women.
Here are some action steps women can take to move their financial futures forward:
- Envision your retirement: The most popular action step women in their working years are taking to address their financial concerns is conducting research to understand their retirement needs according to the Corebridge survey. This is an important first step, as creating an accurate picture of the retirement you envision can help identify what savings and investment strategies you might need. Looking ahead, non-retired women most commonly envision their retirement to include spending time with loved ones (39%), traveling (36%) and picking up new hobbies (33%).
- Start saving now and maximize contributions: With 63% of retired women saying they wish they had started saving earlier and 31% saying they wish they had contributed more of each paycheck into their retirement plan, the message is clear: Start contributing to a workplace retirement plan as early as you can. Where possible, try to contribute enough to take advantage of employer matching.
- Create your own lifetime income for retirement: Among both retired and non-retired female respondents, the combined category of savings/money market accounts represents the most widely owned asset. However, the second most widely owned asset among retired women (33%) is a pension, compared to just 9% of non-retired women who say they have one. Conversely, 31% of non-retired women said they have a workplace retirement account, compared to 16% of retired women. This reversal of ownership reflects a changing retirement landscape in which the responsibility to secure a lifetime income stream is increasingly shifting to individuals. Perhaps not surprisingly, retired women surveyed were nearly three times as likely to own an annuity compared to non-retired women at ownership rates of 13% and 5% respectively.
- Consider working with a financial professional: The Corebridge survey finds that working with a financial professional is strongly correlated with better financial health and confidence. Nearly three in five women who work with a financial professional (59%) rate their financial health positively, compared to just 33% who do not. Women who use a financial professional also feel more confident in their financial capabilities, especially when it comes to retirement and making investments. Nearly three in five women who work with a financial professional (57%) have confidence in their ability to plan for retirement, and 46% are confident in their ability to make sound investments compared to just 24% and 18% respectively among those who don’t.
Additional insights on the 2024 Women Speak Out on Money Matters survey can be found at Corebridge Insights & Education.
Methodology
The 2024 Corebridge Financial Women Speak Out on Money Matters study is based on online survey responses conducted by Morning Consult on behalf of Corebridge Financial between May 2-8, 2024, among a national sample of 4,023 adults (2,574 women and 1,439 men).
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $410 billion in assets under management and administration as of September 30, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube and Instagram.
