Women’s Desire for Active Retirements Underscores Need for Informed
SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 11, 2014--
Despite starting with less savings at retirement and needing to fund
more years in retirement, a new survey from Financial Engines
(NASDAQ:FNGN) found that women are surprisingly optimistic about their
golden years. Fifty-one percent of women surveyed said that they are
looking forward to retirement, compared to just 41 percent of men.
The survey also found that women are less worried than men about getting
older (29 percent of women vs. 40 percent of men) or getting bored in
retirement (20 percent of women vs. 25 percent of men). In fact, women
looking forward to retirement are most excited about spending more time
with family and friends (74 percent), travel (58 percent), pursuing a
favorite hobby or passion (56 percent) and volunteering (44 percent).
Forty-eight percent also expressed interest in sleeping in later.
“While women have to plan for living longer and often start out
retirement with less accumulated wealth due to absences from the
workforce, our survey found that they are more comfortable with
themselves as they get older and want to do more in retirement,” said
Kelly O’Donnell, executive vice president at Financial Engines. “After
spending their lives working, raising kids, and often acting as
caregivers to aging parents, many women see retirement as some
much-needed and well-deserved ‘me time’. To get the most of their lives
after work, women need a plan for funding their outside interests in
Some Anxiety About the Future
While the majority of women are looking forward to retirement,
one-in-four (27 percent) admit to feeling anxious about their financial
futures, regardless of how much money they earn now. Women are most
concerned about rising healthcare costs (44 percent), running out of
money (43 percent) and Social Security going bankrupt (30 percent).
That general anxiety around retirement is not entirely unfounded. A 65
year-old woman today can expect to live to 86.6—more than two years
longer than men1. In addition, they tend to earn lower wages
and can have absences from the workforce when their children are young
or to take care of an aging parent—all of which can result in lower
401(k) balances and Social Security benefits. According to Financial
Engines, the median 401(k) account balance for men age 60 and older is
about $84,000 and only $43,000 for women in that same age group.
According to the Social Security Administration, when a member of a
married couple dies, the survivor, who is more likely to be the woman,
will live an average of 11 years on his or her own. When you claim
Social Security affects the benefit amount you’ll receive and
potentially your quality of life in retirement. Claiming too early can
mean missing out on as much as $100,000 or more in benefits for
individuals and $250,000 or more for married couples.
“Deciding when to claim Social Security is an important decision for
everyone, but it’s especially important for women,” explained O’Donnell.
“With over 8,000 potential strategies for married couples and many
others for women who are single or divorced, the bottom line is that
it’s important to have a plan to maximize your income in retirement.”
To help women and men make informed Social Security claiming decisions,
Financial Engines has made its Social
Security planner available to the public at no cost. Additional
planning information and resources can be found at www.corp.financialengines.com/women.
ORC International conducted the study for Financial Engines from
September 25-28, 2014 as part of its Telephone CARAVAN® survey. The
study was conducted using two probability samples: randomly selected
landline telephone numbers and randomly selected mobile (cell) telephone
numbers. The combined sample consists of 552 adults (55 years old and
older) living in the continental United States. Of the 552 interviews,
419 were from the landline sample and 133 from the cell phone sample.
Surveys were collected by trained and supervised, US-based interviewers
using ORC International’s computer assisted telephone interviewing
(CATI) system. Final data is adjusted to take the two sample frames into
account and then weighted by age, gender, region, race/ethnicity and
education to be proportionally representative of the US adult population.
About Financial Engines
Financial Engines is America’s largest independent investment advisor.
We help people make the most of their retirement assets by providing
professional investment management and advice. Headquartered in
Sunnyvale, CA, Financial Engines was co-founded in 1996 by Nobel
Prize-winning economist Bill Sharpe. Today, we offer retirement help to
more than nine million employees across 580+ companies nationwide
(including more than 140 of the Fortune 500). Our investment
methodology, combined with powerful online services, dedicated advisor
center and personal attention allow us to help more Americans get on the
path to a secure retirement. For more information, visit www.financialengines.com.
Advisory and sub-advisory services provided by Financial Engines
Advisors, L.L.C., a federally registered investment advisor and
wholly-owned subsidiary of Financial Engines, Inc. Financial Engines
does not guarantee future results.
This press release contains forward-looking statements, including
statements regarding the use of professional investment and financial
planning help, which involve risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties are
outlined in our SEC filings. You are cautioned not to unduly rely on
these forward-looking statements, which speak only as of the date of
this press release. Unless required by law, Financial Engines undertakes
no obligation to publicly revise any forward-looking statement to
reflect circumstances or events after the date of this press release or
to report the occurrence of unanticipated events.
Source: Financial Engines
Mike Jurs, 408-498-6590
Gardell Kreuter, 646-428-0618