Nearly half of all women don't have a retirement strategy, despite the fact that 56 percent of women expect to self-fund their retirement through 401(k) plans, retirement accounts or other savings and investments.
According to Transamerica Center for Retirement Studies’ latest research, “Juggling Current Priorities and Long-Term Security: Every Woman Needs Her Own Retirement Strategy,” there's a “striking disconnect among women between how they envision their retirement and how they are preparing to realize that vision."
When women do have access to workplace retirement benefits such as 401(k)s, 74 percent participate. Women’s annual contribution rate, as a percentage of salary, is 6 percent (median), an amount that is likely insufficient for meeting long-term retirement needs. An alarming 22 percent of women are “not sure” how their savings are invested.
Three out of four women agree that they do not know as much as they should about retirement investing. “Despite unique challenges that women face, there are important opportunities within reach that can help them improve their retirement outlook, such as getting savvy about saving and investing,” Collinson says.