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According to the study, among those who have savings in or outside of an employer-sponsored retirement plan, men have substantially more saved than women, a striking
A key driver of total retirement savings is the percentage of salary that individuals contribute to their employer-sponsored retirement plan.
"It is clear that manywomen – regardless of their age or life stage – must do more to save for their retirement," said
Mothers Are Challenged in Retirement Savings
ING U.S.'s study found that mothers face additional hurdles when it comes to building their retirement security. While the income gap between men and women has narrowed in recent years, mothers tend to spend more time out of the workforce due to caregiver responsibilities. This reality reduces their earning and savings potential and also lowers
- The majority (60%) of mothers do not feel prepared for retirement and almost half (46%) don't know how to achieve their retirement goals.
- Just over half (53%) of mothers have less than
$25,000saved in their employer-sponsored retirement plan.
- Less than two-thirds (65%) of mothers are receiving their employer's full company match compared to more than three-quarters (76%) of fathers.
Single Women More Self-Reliant for Financial Planning
The percentage of single women 18 years or older in the U.S. has more than doubled in the last fifty years from 12 to 25 percent, according to the
- More single women (69%) said they relied on their own research or family and friends for financial guidance than married women (63%) and single women were less likely to work with a financial professional (21%) than married, divorced or widowed women (31%).
- Less than three-in-ten (28%) have calculated how much they'll need to retire, compared to half (50%) of men.
- Approximately one quarter (26%) of single women spent some or a lot of time thinking about retirement, compared to a greater number (44%) of widowed/divorced women.
The study also found that women across the generations have differences in their approach to retirement and planning.
- Gen Y (age 25-34) women are most likely to have barriers to saving (86%) compared to women 35 or older (74%) and more than half of Gen Y women (56%) have outstanding student loans.
- Only a small number (6%) of Gen Y women put most of their extra money to retirement savings, whereas close to half (47%) put it towards entertainment or vacations.
- More than half (54%) of women ages 50-64 have not calculated how much money they will need to continue their current lifestyle after retirement.
- Only one-third (33%) of women ages 50-64 have a formal investment plan to reach their retirement goals.
"We can see that the financial planning needs and retirement savings goals of women reflect the demands of their lives, and for many it is a challenge to identify what needs come first," adds Beams. "Working with a financial professional can help women address and prioritize their distinct situations so they can be best prepared for retirement."
As a leading provider of retirement products and services, both at the workplace and through independent financial professionals, ING U.S.'s goal is to help make it easier for Americans, men and women alike, to grow, protect, and enjoy their savings across all major life stages and financial milestones. ING U.S.'s network of financial professionals includes over 2,500 registered representatives, approximately 400 of whom are female, with
A key component of retirement security and comfort for women is securing a dependable income stream in retirement. The need for women in particular to ensure retirement income is magnified by longevity trends.
1 Findings are from an online survey conducted by
2 "With children" is defined as "with one or more children under the age of 18 living in your home"
3 "Barely Half of U.S. Adults Are Married – A Record Low",
ING U.S. constitutes the U.S.-based retirement, insurance and investment management operations of Dutch-based
SOURCE ING U.S.
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