"The anxiety expressed by women is understandable when you consider the challenges they face in achieving a financially secure retirement," IRI President and CEO Cathy Weatherford says. "Income disparities and time out of the workforce are among factors that will reduce retirement savings as well as Social Security and employer-provided retirement benefits.
At the same time, longer lifespans will necessitate more savings to produce additional years of retirement income.
"To overcome these challenges, women will need to channel their concerns into positive actions," she adds. "This is an area where the retirement planning community can make a significant impact, but it will require a more thorough understanding of women's priorities, values, and preferences."
The study also reveals women's preferences when evaluating a financial advisor. Compared to men, women place much more importance on a financial professional's ability to explain financial concepts clearly without talking down to them. Nearly 6 in10 (58 percent) of women compared to only 35 percent of men say this is extremely important. Women also place a higher level of importance on advisors' ability to listen well, use new technologies, and consistently follow up. Women also emphasize that they want advisors to talk to them and not just their spouses.
Other key findings from the report:
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Women have higher levels of concern regarding financial issues compared to men. Women have the highest levels of concern about debt, paying bills, and investments declining in value.
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Spouses do not always see eye to eye on who takes the lead in working with their financial advisor, with 39 percent of men saying they take the lead, compared to only 26 percent of women. Meanwhile 39 percent of women say they and their spouse work equally with their advisor, compared to only 26 percent of men.
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Only one in five women described themselves as a "do it yourself" investor, compared to 40 percent of men. On the other hand, women are more likely to describe themselves as "do it with me" or "do it for me" investors.
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Women are more likely than men to consult people in their social network for financial advice. Nearly 6 in 10 (57 percent) of women will consult friends and family and 40 percent will consult work colleagues, compared to 43 percent and 31 percent of men, respectively.
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36 percent of women say identifying areas to cut back is their biggest obstacle to saving, compared to 31 percent of men.
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Lacking discipline to save is less of an issue for women than it is for men, with 18 percent of women citing this as an obstacle compared to 26 percent of men.
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78 percent of women are contributing to a retirement savings plan.
