the pandemic and their financial stress.
Forty-two percent of women workers experienced one or more
impacts to their employment as a result of the pandemic, including reduced work hours (28 percent), reduced salaries (13 percent), furloughs (9 percent), layoffs (8 percent), and/or early retirement (3 percent).
Six in 10 made adjustments due to pandemic-related financial strain (60 percent), such as reducing day-to-day expenses (35 percent), dipping into savings accounts (25 percent), and/or accumulating new credit card debt (17 percent). Approximately one in eight women skipped health care (13 percent), borrowed money from others (13 percent), and reduced or stopped contributing to retirement accounts (12 percent).
Sixty-two percent cite paying off some form of debt as a financial priority. Other financial priorities include saving for retirement (56 percent), building emergency savings (46 percent), and just getting by to cover basic living expenses (32 percent).
Almost four in 10 say they are having trouble making ends meet (38 percent) — and 42 percent often feel anxious and depressed.
Emergency savings are low. Women have only $4,000 (median) in emergency savings. Emergency savings increase with age: Generation Z women have saved $800, Millennials have saved $2,000, Generation X has saved $5,000, and Baby Boomers have saved $7,000 (medians).
Women’s Retirement Expectations,
Preparations, and Insecurity
“Amid the formidable challenges and setbacks of the pandemic, women continue to have big dreams and are focused on their future retirement. However, despite their efforts, many are not saving enough to be able to enjoy a comfortable lifestyle in retirement,” Collinson said. The survey findings illustrate women workers’ expectations and risks.
Traveling is the most often cited retirement dream among women workers (66 percent), followed by spending more time with family and friends (60 percent), and pursuing hobbies (46 percent). For some, retirement dreams include working (32 percent), volunteering (28 percent), and taking care of their grandchildren (21 percent).
More than three in four are saving for retirement (77 percent)
through employer-sponsored plans (e.g., 401(k) or similar plans) and/ or outside the workplace (e.g., in IRAs, mutual funds, or bank account). Among those who are saving, women started saving at age 28 (median).
Some are taking loans and early withdrawals from retirement
accounts. Twenty-seven percent of women have taken a loan, early withdrawal, and/or hardship withdrawal from their 401(k) or similar plan or IRA at some point, including 19 percent who have taken a loan and 19 percent who have taken an early and/or hardship withdrawal.
Many expect their primary source of retirement income to be self-funded savings from 401(k)/403(b)/IRAs and or other savings and investments (47 percent). Twenty-seven percent
of women workers expect to rely primarily on Social Security and 15 percent on income from working.
Household retirement savings are alarmingly low. Women workers have saved only $57,000 (estimated median) in all household retirement accounts. Retirement savings increase with age: Generation Z women have saved $5,000, Millennials have saved $42,000, Generation X has saved $66,000, and Baby Boomers have saved $134,000 (estimated medians).
Fifty-five percent expect to work past age 65 or do not plan to retire – and 53 percent plan to continue working at least part-time in retirement. Eighty-three percent of these women workers cite financial reasons for planning to do so, while almost as many (77 percent) cite healthy aging-related reasons.
Less than one in five are “very” confident that they will be able
to fully retire with a comfortable lifestyle (18 percent). Moreover, 18 percent of women workers indicate their retirement confidence has declined as a result of the pandemic.
