Wachovia Study Shows: More Than 50 Percent of Pre-Retirement Women
"Frightened" of Stock Market
CHARLOTTE, N.C., May 5 /PRNewswire-FirstCall/ -- 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."
Richard Day Research of Evanston, Ill., conducted 2,100 online
interviews for Wachovia with respondents between the ages of 35 and 70 and
with household assets or income of $75,000 or more, either currently or in
the year before retirement, excluding the value of real estate holdings.
Members of the media can obtain a full study by contacting Amy Jones at
704-383-4995.
Women and Retirement Tips
Wachovia offers a robust retirement Web site at
http://www.wachovia.com/retirement, but here are some specific tips focused on
women and retirement.
Stop Worrying & Start Planning
------------------------------
Anxiety won't help you become more prepared for retirement, but if you
start putting pencil to paper you can create a plan that works for you.
-- Look at your current earnings power and think about recreating 70-80
percent of that amount in retirement by saving now - it's never too
late to start.
-- Analyze how much money comes in each month and how much goes out -
track what you spend so you can find ways to cut back on spending and
put more cash into savings.
Take Advantage of Your Company 401(k) Plan
------------------------------------------
-- If you have a company 401 (k), put the maximum percentage of your
pretax earnings into savings.
-- If your company matches, be sure to contribute at or beyond the company
match.
-- If you change jobs, avoid cashing out your retirement plan; roll over
your savings into an IRA.
-- If your company doesn't offer a savings plan, you can get an IRA from a
qualified financial institution.
-- Take full advantage of "catch up" contributions if you are over 50.
Gain Confidence - Educate Yourself
---------------------------------- You don't have to be an expert -- just get started and learn about the
basics of compounding retirement savings over time.
-- You can start at any age.
-- Approach planning based on the stage of life you are in.
-- Visit Wachovia.com/women -- a great place to start learning what you
can do based on your age and life events.
Expect to Live Longer
--------------------- On average, a woman retiring at age 65 can expect to live another 20
years. Savings can increase a woman's chances of having enough money to
last in retirement.
-- Longevity increases the need for a secure and longer retirement income
stream.
-- Prepare, plan and protect a withdrawal strategy to help make your
income last
-- Plan for the unexpected (like rising cost of health care).
-- Postpone taking Social Security benefits until after 65 if possible
(benefit could be larger).
-- Check out living http://to100.com, to calculate your anticipated life
expectancy.
Talk With a Financial Advisor
----------------------------- Seek a financial partner who will listen to your needs and objectives
and will help you build a plan:
-- A good advisor will help prioritize your goals and re-evaluate your
plan as your situation and goals change.
-- If you have an advisor, make sure he or she has prepared a plan that
effectively outlines your vision and your goals and provides regular
updates on progress.
About Wachovia
Wachovia Corporation (NYSE: WB) is one of the nation's largest
diversified financial services companies, with assets of $808.9 billion and
market capitalization of $53.8 billion at March 31, 2008. Wachovia provides
a broad range of retail banking and brokerage, asset and wealth management,
and corporate and investment banking products and services to customers
through 3,300 retail financial centers in 21 states from Connecticut to
Florida and west to Texas and California, and nationwide retail brokerage,
mortgage lending and auto finance businesses. Globally, clients are served
in selected corporate and institutional sectors and through more than 40
international offices. Our retail brokerage operations under the Wachovia
Securities brand name manage more than $1.1 trillion in client assets
through 18,600 registered representatives in 1,500 offices nationwide.
SOURCE Wachovia Corporation
 back to top
Related links:
http://www.wachovia.com
http://www.prnewswire.com/comp/314125.html/
CONTACT:
Amy H. Jones of Wachovia Corporation,
+1-704-383-4995
|
