Women and Retirement Savings
Women and Retirement Savings
Recent research paints an encouraging picture of women’s financial engagement. Most women are actively saving, feel confident about their finances, and prioritize long-term financial security. The data also reveal some opportunities around confidence, strategies, and obstacles that education, guidance, and employer-sponsored benefits can help close. For plan sponsors and advisors, it may be worth considering these findings and how plan resources can be used to support women while benefiting all participants.
Insights into Confidence and Guidance Preferences
According to a Vanguard survey, 70% of women respondents say they feel confident about their savings. In terms of where they turn to boost their financial knowledge and confidence – and what motivates them to act – Vanguard found that women are more likely to reconsider their savings approach when guidance comes from a trusted source (cited by 35% of respondents), a certified financial professional (29%), or when it is paired with broader financial education (30%). This suggests support from credible, trustworthy sources can play a meaningful role in helping women build and act on their financial confidence.
Working Toward Financial Security, but Facing Challenges Along the Way
Nearly half of women surveyed by Vanguard cite financial security as their primary motivation for saving. Transamerica also reports nearly eight in 10 women are pursuing that goal by saving for retirement through an employer plan or on their own. However, challenges remain in building a complete financial safety net. The most common self-reported financial regrets among women include:
• Spending on nonessential items (27%)
• Delaying savings toward important goals (18%)
• Prioritizing financial support for friends or family over their own savings (14%)
These findings highlight the competing priorities many women are navigating as they work toward long-term financial security.
How Plan Sponsors and Advisors Can Help
Sponsors and advisors are well positioned to help women build financial confidence and align their savings behaviors with their long-term goals. Effective strategies can include:
• Providing access to financial education resources from established, verifiable sources. Women want to know the guidance they’re getting is reliable. Be clear about where educational information comes from, so they can easily assess and evaluate it for themselves.
• Communicating how plan features and benefits, from employer matches and auto-escalation to the simplicity of target date funds, can help participants make progress toward financial security, which more than half of women identify as a key savings motivator.
• Tailoring communications and financial wellness programming to reflect the specific goals and priorities women bring to retirement planning. By linking plan features and benefits to real-life financial concerns, sponsors can help women better understand how their workplace retirement plan supports their long-term goals.
Sources:
https://www.aboutschwab.com/mss/story/why-dont-women-identify-as-investors