Women Gaining Confidence on Retirement Readiness

Women’s confidence in their ability to plan for retirement has reached a three-year high, with 69% of women rating their confidence level as good or very good, according to Scottrade.

Another first in three years, the survey showed women’s confidence is on par with men’s (71% of men rate their confidence as good or very good).   

The survey found women’s savings tactics differ from men’s. More women are finding ways to increase their cash flow during retirement. Forty percent of women have structured their portfolios to include investments that will generate income during retirement, compared to 30% of men. And just over half (51%) of women say that generating income during retirement is more important to them now than it was one year ago.   

In addition, more women have started to save for retirement than men (79% of women vs. 74% of men), and women are more likely to feel that they are saving enough for retirement (22% of women vs. 16% of men).   

Scottrade said women’s attitudes toward spending may be contributing to their positive retirement planning and saving momentum. While more than a quarter (28%) of men are concerned about controlling their urge to spend, only 17% of women share that concern – and that number is down from 27% of women in 2009.   

Further, women are more likely to take proactive steps to address financial concerns (94% of women vs. 88% of men). Although the top five actions taken to reduce financial stress were the same for both genders, considerably more women are taking those actions, which include using coupons (71% of women vs. 47% of men); spending less (69% vs. 57%); comparing prices to find the best deal (63% vs. 53%); cutting back on purchases like clothing, electronics, etc. (58% vs. 41%); and cutting back on entertainment (52% vs. 47%).  

The survey was commissioned by Scottrade and conducted online by Synovate, fielded with a nationally representative sample of 1,000 respondents, between January 13-18, 2011.