According to a recent survey 62 percent of career women age 45 to 70 earning $75,000 or more annually fear they may never have enough money to retire, though this group feels highly confident about how to manage money.
“The MetLife Study of Finances and Female Executives,” produced in conjunction with the Women’s Institute for a Secure Retirement (WISER), found that a large percentage of the surveyed women’s families relied on their income and their main financial focus currently was to put more focus on guaranteed income for retirement. The survey found that 46 percent of these women have a defined benefit plan; a statistic that is double that of the general population. Most of the surveyed women have 401(k) plans, IRAs, and additional savings, yet still have concerns about their financial wellbeing after retirement.
“This poll indicates that many successful women lack confidence in their financial futures,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “The current state of the economy may be a factor, and many remain on the sidelines awaiting direction. As a result, they may not be protecting themselves financially with products like disability insurance, annuities and long-term care insurance, especially since more than half will not be able to count on a pension for retirement. Even those who earn more than $200,000 per year say they’re worried about outliving their income/savings.”
While almost all survey respondents, at 90 percent, said they were confident in their ability to manage household finances, 44 percent of those polled said they wished they had more “business and financial experience.” A common feeling amongst those who responded to the survey was concern surrounding financial security in retirement. Acting on these concerns, 42 percent are trying to focus more on guaranteed income for retirement, 27 percent are saving more, and 25 percent are unsure of what they should do. The majority of these women rated saving for retirement as the most difficult activity they confront (74 percent), while others answered juggling work and family (45 percent) and eldercare (30 percent). Only 18 percent had some type of long-term care insurance.
Most of the polled women work in professional or middle management positions and a significant number work in traditional female occupations such as education and healthcare/social services. Most considered their mothers as their financial role models.
For more information on this survey, please visit the Mature Market Institute.
Written by Kelly Mellott