Lack Of Awareness Hinders Women's Retirement Planning
July 13, 2001
Most women are concerned with their financial future; however, conservative investments and lack of awareness about the unique needs of elderly women could result in inadequate savings for retirement. In "The Women and Retirement Survey," conducted by ORC International in the spring of 2001, nearly half of all women could not identify how much money they will need for retirement.
Other key findings of the survey include:
- Sixty percent of women do not realize that they need to save more money for retirement than men because on average women live seven years longer than men.
- Women do not know they earn considerably less money throughout their lifetimes (due to childbearing and family responsibilities), which will lead to smaller pensions and Social Security payments.
- One quarter of women think $100,000 or less will be enough to support them for a retirement spanning 20 years or more.
- Women's generally conservative investment style undermines their retirement savings because the smaller returns from "safe" investments result in a small retirement account balance.
This survey shows the need for women to realize the essential role that retirement planning plays in their future.
Source: "Women Unprepared for Retirement," Yahoo Finance, July 10, 2001.
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