Alice Morgan, Photo Illustration for Investopedia by Getty Images
The Key Takeaways
- A recent survey found that 50% of women in retirement said their plans for retirement were more expensive.
- Almost half of retired women (46%) said they had retired earlier than planned, which may be detrimental to women's finances, as they typically live longer than men.
- As pensions decline, people must save more for their retirement.
For many women, their vision of retirement may be far from reality—especially when it comes to how much it costs.
Corebridge Financial conducted a study in which half of women said retirement costs were higher than expected, and just over half stated that they retired sooner than anticipated.
According to experts, retiring sooner than expected can lead to negative financial outcomes. Early retirees might not have enough savings or may be required by the government early Social Security payments. This will result in a lower check each month. Women have a longer lifespan than men and may require more retirement savings.
"Women are both starting retirement earlier than expected and managing costs that are higher than anticipated. This dual challenge highlights the importance of developing an action plan in early working years to help build retirement savings, and ensure they last through your retirement.” said Terri Fiedler, President of Retirement Services at Corebridge Financial.
Most Say They Wish They Had Started Saving Sooner
The majority (63%) of women said they wished they had started saving for retirement earlier. More than 40% said they didn’t start to prioritize retirement until they were age 41 or older.
Since investors benefit from the power of compound interest, those who start saving for retirement earlier in life may not need to invest as aggressively as those who start later. In fact, nearly one-third (31%) of retired women surveyed said that, when they were working, they wished they had contributed more from each paycheck into a retirement plan.
And while more workers could rely on pensions in the past, the responsibility of saving for retirement has largely fallen on individuals. One-third (33%) of retired women said they had a pension versus 9% of non-retired women who said they had one. “This reversal of ownership reflects a changing retirement landscape,” the report said.
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