Diversions May 8, 2014

Spending Down But Gifts Still Varied for Mother’s Day

Last year, mom got tablets and smartphones, beauty supplies, apparel and jewelry. This year, consumers turn to more practical gifts, a survey says. 
Reported by

Americans will spend an average of $162.94 on mom this year, down from a high of $168.94 last year, according to the National Retail Federation’s 2014 Mother’s Day Spending Survey. Total spending is expected to reach $19.9 billion.

Most consumers plan to buy a greeting card (81.3%). Two-thirds of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and a third will look for spring sweaters and blouses, spending a total of $1.7 billion on apparel and accessory items.

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Other popular gifts are books and CDs ($480 million), housewares or gardening tools ($812 million), personal experience gifts like a day at the spa ($1.5 billion) and jewelry ($3.6 billion). The biggest category is a special meal out: brunches and dinners are expected to account for $3.8 billion in Mother’s Day spending.

Consumer electronics ticked down as a choice from 2013. More than one in 10 (13.1%) will buy a tablet or smartphone, spending a total of $1.7 billion, down from $2.3 billion last year.

More than two out of every five consumers surveyed (43.3%) plans to buy a gift card, up from 41.5% last year; total spending on gift cards is expected to reach $2.1 billion, up from $2 billion last year.

Among other findings:

 

  • Most shoppers will head to specialty stores for gifts (33.5%) but others will shop at department stores (32.4%), discount stores (24%) and online (29%). Those 18 to 24 are the most likely to shop at department stores.
  • Young adults (ages 25 to 34) will spend the most on mom: an average of $216.53.
  • Nearly two-thirds (63.9%) will shop for their mother or stepmother, 22.5% for their wife, 9.2% for their daughter and 6.6% for their grandmother.

 

Data & Research May 7, 2014

Economy Affected Retirement Security for Women

Many women are still facing financial challenges due to the economy, which are impairing their retirement readiness and outlook.
Reported by

According to a survey by the Insured Retirement Institute, the economy has had a detrimental effect on Generation X women: 35% have experienced difficulties paying their rent or mortgage, 19% stopped contributing to a retirement account, and 13% prematurely withdrew funds from a retirement account. Baby Boomer women also have been affected, although to a lesser extent: 21% experienced difficulties paying their rent or mortgage, 17% stopped contributing a retirement account, and 9% prematurely withdrew retirement savings. Furthermore, one-quarter of Boomer women and 16% of Gen X women postponed their plans to retire as a result of the economy.

Overall, only 30% of Boomer women and 13% of Gen X women have high levels of confidence in accumulating sufficient savings to live comfortably throughout their retirement years.

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Nearly one in five Boomer women and 35% of Gen X women do not have any savings for retirement. Of Gen X women with retirement savings, 44% have savings of $50,000 or less. One-quarter of Gen X women and nearly 40% of Boomer women report they have not contributed to their retirement savings in the past year.

One in five Boomer women and more than one-quarter of Gen X women are unsure of when they will retire. About half of Boomer women plan to retire after age 65, including 29% who plan to retire at age 70 or later. Forty-three percent of Gen X women plan to retire at or before age 65.

More than half of Boomer women and three in four Gen X women have not consulted a financial professional about retirement planning.

The survey found slightly more than half (56%) of Boomer women expect to receive some retirement income from a traditional defined benefit pension, and 37% expect a pension will be a major source of their retirement income. Gen X women are much less likely to expect any sort of traditional pension, just 38%, with 23% anticipating it will provide a major portion of their retirement income.

More than half of Boomer women (60%) and 70% of Gen X women expect some of their retirement income will come from an employer-sponsored retirement savings plan, such as a 401(k). Gen X women are more likely to say that they do not know whether they will rely on either a traditional pension or employer-plan savings as a source for their retirement income.

Significant numbers of both Boomer and Gen X women—35% and 21%, respectively—do not think that an employer plan will be a source of retirement income. The Institute says there may still be time for many of these women—if they have access to an employer plan—to either enroll or increase their contributions, and to more actively engage in this savings opportunity.

The full survey report, “Baby Boomer and Gen X Women,” is here.

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