Single and married women have different levels of confidence in retirement

Single and married women have different levels of confidence in retirement

New research from the Employee Benefits Research Institute indicates that women would benefit from marital retirement advice.

The EBRI study shows that single women are less confident in their ability to retire securely than their married counterparts.

EBRI dismissed 758 female workers and 545 retirees from a larger online sample of 2,677 Americans age 25 and older. The study weighted the sample by age, gender, household income, and ethnicity using census data to make it more representative of the local population.

Among unmarried women workers, 51% said they were not confident in their ability to live comfortably during retirement, compared to 22% of married women and 55% who were divorced.

This insecurity comes from a variety of sources. For example, 27% of married women reported having $25,000 or less in total assets, while 56% of single and 58% divorced women did.

Accordingly, single women were more likely to say they prioritize short-term expenses over retirement: 41% of single and divorced women said saving for retirement was not a priority for current needs, compared to 27% of married women. .

Single women were more likely to say they prioritize buying a home or starting a business over saving for retirement. This may indicate that single women are seeking independent sources of income and wealth as a priority, or even as an alternative to retirement savings, although the study does not expand on this topic.

Another explanation for the relative insecurity in retirement for unmarried women is that they are less likely to know where to go for retirement advice, with 45% of single women saying they don’t know where to go for advice, versus 36% of divorced women and 27% of married women.

The study acknowledges that married women’s responses can reflect “collective knowledge,” meaning that although married respondents would not know where to go for advice themselves, they believed their partner would.

Although the study weighted a number of demographic factors, it did not include weighting of educational attainment. This despite the results in the field survey search that those who do not have High school diploma is chronically incompleteAnd the University degree holders are frequently sampled. This is partly due to the fact that people with higher education are more likely to own a cell phone, land line and internet access, and therefore are more likely to be sampled by survey researchers.

Search from the Bio . Center It shows that educated adults are also more likely to be married, so the confidence gap in retirement between unmarried and married women may be due in part to married women who tend to be more educated. In other words, this gap may be exaggerated as it does not affect education, but it cannot be said with certainty without further research.

The EBRI study also indicates that single women were more likely to say that debt was an obstacle to saving for retirement than married women, although it does not specify the sources of the debt. Among unmarried women, 40% objected that debt negatively affects their ability to save for retirement, compared to 56% of married women.

Previous research from the Prudential Financial Pulse survey shows that women have lower confidence in their retirement than men, and are less likely to own employer-sponsored retirement accounts. EBRI’s research shows that this insight can be further improved based on marital status, and can provide more information for retirement investment advice for working women and retirees.

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