A recent study conducted by the Nationwide Retirement Institute® (NRI) has shed light on the retirement concerns faced by women in the workplace. According to the research, one in four women feel they’re “on the wrong track” for retirement, compared to 15% of men. The study also found that 41% of women hold a negative or neutral outlook on their retirement planning, in contrast to just 29% of men.
Cathy Marasco, leader of Protected Retirement for Nationwide Retirement Solutions, highlighted the challenges faced by women in retirement planning, stating, “Women are actively participating in their employer-sponsored retirement plans alongside their male counterparts, but they’re also facing a variety of challenges that can make navigating their retirement journey more complex.” Marasco emphasized the fear of outliving income as a significant concern for women due to their longer life expectancy.
The study revealed that women are more likely to be worried about a recession or economic downturn affecting their retirement savings, with over half expressing concern about outliving their income in retirement. Despite these concerns, only a small percentage of women have diversified their investment portfolio or explored other investment options for economic uncertainty.
In response to these challenges, Marasco emphasized the importance of protected retirement solutions, stating, “Women who participated in our study say a pension-like income stream would reduce their stress, increase their financial security and improve their peace of mind.” The study also found that many women are interested in rolling over their money into an in-plan protected retirement solution if offered, showcasing a desire for guaranteed lifetime income and protection against market volatility.
The study further highlighted that 60% of women savers struggle with determining how long their retirement savings will last, with concerns about healthcare costs, Social Security, and managing expenses during retirement also weighing on their minds. The research suggests that solutions providing a “pension-like” income stream through 401(k) plans could significantly alleviate stress and enhance financial security for women in retirement.
The Nationwide Retirement Institute encourages employers to consider offering guaranteed lifetime income investment solutions through their qualified employer-sponsored plans to provide women with greater financial confidence and peace of mind in retirement. For more information on Nationwide’s Protected Retirement solutions and how they can benefit plan participants, individuals are encouraged to visit Nationwide’s resources for financial professionals and plan sponsors.