Top Financial Priority For Women Is Saving For Retirement
A woman’s top financial concern is saving up for retirement, according to the CUNA Women’s Financial Survey. The study finds that 401(k)s are the most favored; 45.3 percent of women have contributed to a plan. Pension plans follow closely in second place with 35.8 percent of women participating in the program. Forty percent own more than one retirement plan. The fervor over retirement plans are due to the worry that many women feel over their financial security at old age, reports Credit Union Times.
In addition to retirement, women would rather save their hard-earned cash for long-term goals such as education and homeownership rather than investing in a car or paying for a vacation, the study finds.
When it comes to women and men, here’s a tidbit: A new survey finds that nearly 30 percent of workers who make more than $750,000 annually won’t retire until the age of 70. Fifteen percent of wealthy workers say they won’t retire at all. On the flip side, only six percent of those earning less than $100,000 plan to retire over the age of 70.
Although men are thought to be more financially literate, women are more likely to engage in practices, like budgeting, that are advisable for retirement. But despite the fact that 46 percent of the surveyed women co-manage their household finances, more than half of the surveyed women have no confidence in their financial knowledge and ability. This lack in confidence was strongest in the study’s youngest demographic — those born from 1980 to 1993 — where nearly 60 percent had no faith in their money management.
“Our findings indicated that women take all appropriate measures to be confident in their financial literacy but lack the reassuring knowledge to have confidence in how they manage their finances,” said Paul Gentile, Executive Vice President of CUNA. Most women in the survey reported having six months worth of savings in case of unexpected expenses. A large number of women also balance their checkbooks and pay credit card balances in full every month.
Further confirming that the women’s low self-confidence is unwarranted, new research finds that 34 percent of women are setting budgets while only 28 percent of men are doing likewise. “[A] monthly budget […] is critical to efficiently manage any finances,” said PR Newswire.
The Woman’s Financial Survey recruited 1,042 women across the country with respondents born from 1920-1980.