Retirement Security

Prudential Finacial's researchers recommend individuals attempt to maintain $446,565 in savings by age 55 – though in reality, this is eight times the median salary for this group. (Credit: shoelessRVA_photography, Pixabay.com) Financial equality is still out of reach for many women in the U.S. — especially when it comes to their retirement savings, a new report finds. Insurance company Prudential Financial released its annual “Pulse of the American Retiree” survey this week, which analyzes economic trends among U.S. residents ages 55, 65 and 75. When researchers crunched the numbers, they found that women are most vulnerable to retirement insecurity, with women’s median retirement savings totaling $50,000 – compared to $157,000 for men. To put it another way: Women have only a third the amount saved for retirement as their male counterparts. Worse, women are most likely to postpone their retirements due to financial challenges caused by inflation, cost of housing, caregiving duties and changes to tax policies. And not surprisingly, they are also least likely to look forward to retiring. In a comment made to The Story Exchange, Caroline Feeney, CEO of Prudential’s U.S. Businesses, said that “women face unique and complex challenges that make them particularly vulnerable to retirement insecurity. Solutions to address retirement insecurity for women must consider these unique pressures and obligations.” In a press release, Feeney added that “attention today is rightly centered on the approximately 11,000 65-year-olds entering retirement every day, but we must also focus as an industry on the opportunity to help a slightly younger generation of workers entering the critical 10-year countdown to retirement.” Indeed, 55-year-olds are particularly feeling the brunt of the retirement disparity, Prudential says, as they are “critically unprepared for retirement,” — with people in this age bracket having higher debt, while also being more likely to offer caregiver support to their elderly parents and financial support to their children. People in this age group are often faced with the question of “which bucket to earmark savings for: children and their education, their retirement, and/or caring for aging parents?” Stephanie Sherman, a financial planner for Prudential Financial, told The Story Exchange in her own statement. “There is a true cost to being sandwiched between your own family responsibilities and those of caring for aging parents.” Prudential’s latest report also points to the broader issue of the persistent pay gap between women and men as a contributing factor. According to the Department of Labor, women who work full-time, year-round are still, on average, paid 84% of what men are paid. The gulf is wider, still, between Black and Hispanic women’s incomes, and that of white men. Some politicians have taken legislative action to address these disparities in retirement savings, specifically, including Democratic Senators Tammy Baldwin of Wisconsin and Patty Murray of Washington, D-Wash, who along with Democratic Rep. Lauren Underwood of Illinois introduced the Women’s Retirement Protection Act of 2023. The bill, if enacted, would ensure that women will be better prepared for retirement by strengthening consumer protections over their retirement savings, increasing financial literacy, and supporting low-income women and domestic violence survivors seeking retirement benefits. Prudential’s researchers, meanwhile, recommend individuals attempt to maintain $446,565 in savings by age 55 – though in reality, this is eight times the median salary for this group, they also note. A majority of seniors in this age group say they plan to work part-time during their retirement years, and have trouble even saving $400 a month for emergencies due to higher day-to-day costs. These financial burdens not only affect senior’s futures, but their peace of mind, experts say. Those who are age 55 are least likely to be satisfied with their life and relationships, Prudential finds, and are more likely to struggle with their emotions as they head into their retirement years. Despite the hurdles, Feeney of Prudential says change is possible, with the correct action and mindset. “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.” CORRECTION: An earlier version of this post incorrectly reported that "attention today is rightly centered on the approximately 11,000 65-year-olds entering retirement every week." Rather, 11,000 65-year-olds are entering retirement every day.

Retirement Security

Women Lag Behind Men on Retirement Savings, New Study Finds

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