Women are living longer, but that doesn’t necessarily mean they are prepared for the risks of longevity. During their lifetimes, women tend to make less money than men and, in turn, save less for retirement. This leaves them more vulnerable in their later years and with fewer options.
The financial crisis only served to compound women’s concerns about not having enough money to last throughout their lifetimes. Now a report released last week from LIMRA indicated that more than half of middle-income women surveyed felt unsatisfied with their current financial situation and uncertain about their future financial needs. Even more worrisome is that almost a third of the women surveyed don’t know how to achieve their financial goals.
“What’s striking is that consistently, women in the middle market expressed more concern about their financial well-being than men did,” Nilufer Ahmed, a senior research director for LIMRA Markets Research, said in a press release. “The recession has been hard on middle-income Americans, with many indicating that they have not made any progress or fallen behind on their financial goals. Yet, the women we surveyed seemed to be more receptive to listening to financial services representatives for the tools and advice needed to achieve their financial goals.”
Saving enough for retirement is a concern for women and men alike, but 54% of women compared with 49% of men feel like they are not saving enough. Part of the reason for women’s worries about retirement savings is that women tend to be more risk-adverse and less likely to invest in stocks and mutual funds, which cuts into their savings, according to LIMRA.
Only four in 10 women (and men) say they develop a budget and save accordingly and less than 40% say they want help from a financial advisor to develop a lifetime or retirement income plan. Most are unsure of where to get help or the costs involved.
LIMRA’s research found that women were more likely than men to feel they do not have adequate life insurance coverage to meet their family’s needs. Married women, in particular, tend to believe that their households need more life insurance coverage compared to married men, according to the firm.
In addition, LIMRA’s research found that being able to afford long-term care is also a higher priority for women.
Who have you spoken with about your worries? Schedule a complimentary discussion about your worries with Wendy Kouvaras, Financial Advisor with Rehmann Financial today. Wendy.firstname.lastname@example.org 440.356.4537.