A potential retirement crisis is brewing among female retirees who have only saved about one-third of the amount men have, according to a Prudential Financial survey released Monday.
The survey of 905 American adults between the ages of 55 and 75 found that while men had saved a median of $157,000 for retirement, women had only set aside $50,000.
“The financial futures of certain cohorts – such as women – are especially precarious,” Caroline Feeney, CEO of Prudential’s U.S. businesses, said in a statement.Â
“Women have a more challenging time saving for retirement,” she added, noting that inflation, housing prices and changing tax policies have been the main barriers.
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In comparison to the men surveyed, women were three times more likely to be focused on providing for their families and children than saving.
Nearly half, 46%, of men surveyed said they were looking forward to retirement and had more plans, compared with 27% of women polled.
“The upside is that, with the right planning and strategy to protect their life’s work, we can ensure this generation is well-prepared to live not only longer, but better,” Feeney said.
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The survey also found that 55-year-old Americans are financially unprepared for retirement, with the median savings for that age range at about $47,950 compared to the $446,565 recommended by Prudential – an amount that’s about eight times the average U.S. salary.
Two-thirds of 55-year-olds said they fear outliving their retirement savings, compared to 59% of 65-year-olds and 52% of 75-year-olds.
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Nearly one-fourth, 24%, of 55-year-olds said they expect to need financial support from family members in retirement – twice as many as the 12% of 65- and 75-year-olds who expressed those concerns.
About one-in-five 55-year-olds, or 21%, expect to need housing support compared to 12% of 65-year-olds and 9% of 75-year-olds. Despite those concerns, 48% of 55-year-olds who expressed those concerns haven’t discussed it with their family yet.
Pensions were also less common among 55-year-olds compared to their older peers, as the survey found they were nearly twice as likely as 65- and 75-year-olds to rely on “do-it-yourself” employer-sponsored plans like 401(k)s to fund their retirement.
Reuters contributed to this report.
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