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A retirement crisis is looming for women, reports Mintel
By: PR Newswire
Nov. 15, 2012 02:19 PM
CHICAGO, Nov. 15, 2012 /PRNewswire/ -- The impending fiscal cliff is not the only financial crisis that Americans are facing. According to the latest Mintel research, most Americans, particularly women, are woefully underprepared for retirement. In fact, four in ten women have less than $10K saved, and only 21% have more than $100K in all of their investment accounts.
The situation is even more dire for pre-retirees. Some 58% of single women aged 45+ who have any kind of savings or retirement account have less than $50K saved, while only 22% have more than $100K saved. At the same time, these women are aware of their need to step up their savings efforts, as only 5% of 45-54-year-old women and 16% of 55-64-year-old women believe they are saving enough for their twilight years.
"Women nearing retirement age believe saving for retirement is very important, and women aged 25-44 are the most likely to rate saving for retirement as their top financial goal over the next year," says Susan Menke, VP and behavioral economist at Mintel. "While it may be too late for older women, research suggests that younger women are starting to save early and may not end up in the same predicament."
Thirty-six percent of women who aren't retired yet say they plan to keep working at least part-time during retirement because they expect they will need the income. That number jumps to 50% for women who are 55-64-years old. Lack of retirement planning is evident in that only 13% of women who aren't retired say they have determined the age at which they will be able to do so.
"There is a definite opportunity for banks that are willing to offer quality advisory services to their female clients," notes Susan Menke. "More than half of women say they 'trust the professionals at their bank to give them good advice about the products that are best for them,' suggesting they would respond well to recommendations made by an advisor at their bank of choice."
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