Women are traditionally more concerned about amassing adequate savings for their golden years, but new research reveals that they are significantly less engaged in retirement planning than their male counterparts.
A new study conducted by LIMRA reveals that while women are fully aware of the risks of not planning for their futures – and express grave concern about these risks – 32 percent have not begun implementing a retirement savings plan. This includes making calculations about their future needs and how much they need to save to accomplish those goals.
For example, the research reveals that while 46 percent of men actively monitor and manage their retirement savings, only one-third of women admit to these same activities. Further, while two-thirds of females express concerns about being unable to maintain or achieve their chosen retirement lifestyle, only 26 percent say they make attempts to educate themselves on financial products that can help boost their savings.
Marketing aggressively to women
While men are typically more aggressive investors and savers than women, the latter experience more retirement challenges, making it imperative that they sufficiently plan for retirement. For example, women typically live longer than men, necessitating a larger retirement nest egg. In addition, females generally earn less in the workforce than their male counterparts, and many may temporarily leave their positions for family planning reasons, further decimating their earnings.
These scenarios, therefore, represent a prime opportunity for finance marketing agencies to reach out to women and unveil the various products and services that would help facilitate a sound retirement. In addition to traditional investments and products that ensure financial longevity – such as annuities – advisors and financial companies may also be in a position to recommend key insurance products as well that allow women to further protect themselves.
"The knowledge gap between men and women continues to be an issue – just 33 percent of women felt they were knowledgeable about financial products and services, compared with 55 percent of men," said Cecilia Shiner, senior analyst of LIMRA retirement research. "Our research shows that when consumers feel more knowledgeable about financial products, they are more likely to be engaged. Advisors and companies should be developing new strategies to educate women and increase their engagement level."
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