Most think he’ll cut funding to the source of retirement income they were relying on.
President Trump really has a way with women.
Debt.com has previously reported that Americans close to retirement may be stressed over Trump’s presidency. Now we know they are — especially women.
Two-thirds (62 percent) of women, 50 and older, plan to use Social Security as a main income source — but 58 percent believe Trump’s administration will cut its funding, says a study from Nationwide Retirement Institute.
“The percentage of women who believe Social Security will run out in their lifetime is the highest we have seen since we started this survey four years ago,” says Tina Ambrozy, president of sales and distribution for Nationwide. “Of the future women retirees who said they plan to claim Social Security benefits early, some cited concerns that benefits might be reduced due to Social Security reforms.”
There’s still hope, especially for the next generation of women.
Women’s retirement woes
Debt.com has previously reported that what women don’t know may hurt them in retirement.
More than 80 percent of women failed a quiz on basic retirement saving knowledge from The American College of Financial Services. Only 18 percent of women passed the test, but nearly twice the amount of men were able to pass the quiz, the study says.
Despite the low scores on this quiz, 55 percent of women felt “extremely confident” they and their spouse would be comfortable financially in their retirement.
“Women face considerable challenges when it comes to preparing for retirement, and lacking financial literacy certainly does not help the cause,” says Jocelyn Wright, professor of women’s studies at The American College of Financial Services. “With this in mind, women cannot depend on their spouse to hold the keys to their retirement. It is time to get smart on how to navigate this complex and extremely important stage of life.”
Debt.com has also previously reported that men and women have different money fears, one being retirement. Men (23 percent) worry more that they won’t have enough saved for retirement than women (20 percent).
This could be due to the fact that men are more likely to consider themselves to be the primary financial decision makers in their house — only 20 percent of women say they are, while 65 percent of men do. It’s interesting to note that of the women who did consider themselves to be the financial decision maker in their house (26 percent) were twice as likely to pass the quiz, than those (12 percent) who say they share decision making with their husband.
Women need to learn more
The biggest reason women need to learn to better optimize their retirement savings: Women live longer than men.
That means financial decisions shouldn’t be left up to men. Women need equal participation, so they can learn and manage money independently of men.
The average life expectancy is 75 for women and 72 for men, according to a study from Black Rock, an investment management company. Men are more likely to invest their money, and to want to, according to Ellevest, an investing site focused on women.
“Too many women retirees have no retirement income outside of Social Security,” says Roberta Eckert, VP of the Nationwide Retirement Institute. “And even for women that do, the fact that they live longer, makes considering maximizing Social Security benefits extremely important.”
One fourth of women close to retirement think Social Security will be enough to fund their retirement. And 74 percent of those collecting Social Security say they started collecting it too early, denying themselves full benefits. Another reason why it’s so important to learn about investing sooner than when it’s too late.
“Women face a number of challenges that the average man does not face in retirement, including greater longevity,”says Jamie Hopkins, co-director at The American College of Financial Services. “So in some ways women should be more aggressive investors and have better retirement income literacy rates as they need to make their money last even longer in retirement.”
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Article last modified on July 10, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Trump Makes Women Close to Retirement Worry - AMP.