Data & Research January 11, 2012

Majority of Women Not Talking About Retirement Planning

Only 8% of women strongly agree they are building a large enough retirement nest egg. 
Reported by

According to research released by Transamerica Center for Retirement Studies, friends and family are the most frequently cited go-to sources of retirement planning and investing information among women (37%). The problem is that women aren’t talking about it enough; only 8% talk about retirement planning “frequently” and 30% of women “never” talk about it with family and friends.

The majority of women (54%) said they seek advice, but make their own decisions about saving and investing for retirement. Only 31%, however, indicate they use a professional financial adviser. Another 29% are do-it-yourselfers who prefer to do their own research and make their own decisions.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The majority of women (37%) rely on friends and family, closely followed by a financial planner or broker (29%), their retirement plan provider’s website (27%) and financial websites (25%).

When asked what would motivate them the most to learn more about saving and investing for retirement, women most frequently said a good starting point and educational materials that are “easier to understand” (34%).

According to the survey, more than half (53%) of women expect to self-fund their retirement through 401(k)s, 403(b)s or IRAs and/or outside savings and investments; 31% expect to rely on Social Security. Of those women who expect to rely on Social Security, only 14% have “a great deal” of understanding of the benefits, and nearly as many (12%) indicated they have “none.” Additionally, when it comes to retirement investing, the vast majority of women (78%) say they do not know as much as they should.

The majority of women (60%) “guessed” their estimated retirement savings goal. And few women (7%) have a written plan documenting their retirement strategy, while 53% have no plan at all; only 16% have a back-up plan in the event that they are unable to work before their planned retirement.

Few women (22%) are aware of the Saver’s Credit (see IRS Saver's Credit Helps Workers Save for Retirement) and about half (48%) are aware of the ability to make Catch-Up Contributions.

The survey was conducted online within the U.S. by Harris Interactive on behalf of Transamerica Center for Retirement Studies between January 31 and March 10, 2011, among 4,080 full-time and part-time workers, including 1,811 women. For the full survey results, visit www.transamericacenter.org.

Data & Research January 11, 2012

Americans Say Financial Plan Ensures Confidence

More than half (58%) of Americans indicate they would feel more confident about their finances if they had a financial plan in place.  
Reported by

According to a survey released by Certified Financial Planner Board of Standards Inc., if given one hour with a financial planner, people would take advantage of it—focusing on retirement and budget planning. Thirty-six percent of Americans reported working with a financial planner or adviser. 

The survey revealed that more than four in five (86%) respondents agree with the statement, “Everyone should have a financial plan. Even if you have very little money, it is good to know in advance how you will spend it and the best means of growing what you have.”

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Seventy-nine percent of respondents claimed to have a financial plan in place. The majority of respondents, however, do not have an official, written document. Forty-six percent said they just have a plan in their head, and 11% only have notes or ideas written down. Forty-two percent of respondents said they had an official written plan.

«