Wachovia's fourth annual Retirement Survey shows that major gaps exist between men and women when it comes to planning for and living in retirement.
When it comes to the stock market, 54 percent of the pre-retirement women surveyed say they are "frightened" by the idea of entrusting their savings to the market, nearly double the number of men - 30 percent - who say they feel this way.
A total of 42 percent of women surveyed say they feel "intimidated" by preparing for retirement either "sometimes" or "often," as opposed to 29 percent of men. And 47 percent of women feel investing "takes more knowledge and skill" than they have, as opposed to 30 percent of the men surveyed.
"Women need to become more comfortable and confident with retirement saving and the basics of the market so they can create a nest egg that will last," said Lynne Ford, director of Wachovia's Retail Retirement Group.
One difficulty working women face in saving for retirement is that many do not have a 401(k) plan. Of the employed women surveyed, 31 percent said they do not have access to this savings vehicle, versus 19 percent of the men surveyed. Among women who report having a 401 (k), only about a quarter contributed the maximum amount allowed in 2007 versus 33 percent of the male respondents.
An equal number of women and men report having an IRA: 63 percent of women and 65 percent of the men.
Gender Differences in Retirement: Behaviors and Perceptions
In retirement, more women, 35 percent, than men, 22 percent, report withdrawing 10 percent or more of their retirement savings to pay for living expenses. The industry recommendation is to withdraw no more than 4 percent annually.
According to the study, women are also less inclined to link their satisfaction in retirement to how much money they have or to see themselves as having planned effectively for retirement during their working years. Of the men and women who had retired and said it was going "somewhat better" to "much better than expected," money and planning had a significantly different impact on happiness for each gender.
A strong majority - 65 percent - of men said they have "more money than they expected," as opposed to 55 percent of women. Also, 53 percent of men said they "planned effectively before retirement for their finances" versus 44 percent of the women surveyed.
"The study shows us that more men attribute their satisfaction in retirement to having more money than do women, and more men say they planned effectively in the pre-retirement years than do women," Ford said. "We'd like to see an increase in women citing planning as an ingredient for satisfaction in retirement because having a plan will help people achieve a greater sense of stability." -- Wachovia Corporation
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