Women tend to worry more than men about most financial issues, including saving for retirement. What do they see as the key obstacles?
Men sound a lot more confident than women about their retirement security, according to the latest monthly poll from Millionaire Corner, which provides further insight into the differing ways the genders perceive saving for retirement and other personal financial issues.
Nearly three-fourths (74 percent) of the men investors surveyed in November said they feel they are putting away enough money to live comfortably in their golden years. Less than 59 percent of women investors feel so confident about saving for retirement.
The results mirror previous Millionaire Corner research into the Mars/Venus divide. Earlier studies have found that women generally appear more worried about financial issues, such as market volatility or household spending and debt, but that men are more likely to take action to address their concerns. In the case of market volatility, men indicated they were more likely to implement strategies, such as adjusting their financial portfolio (45 percent) or taking a more short-term investment strategy vs. a buy-and-hold strategy (27 percent). Women only the other hand said they were more likely to respond to volatility by reducing their personal spending (45 percent).
Men also tend to express greater confidence in their investment abilities and financial knowledge, according to our research, but are also likely to admit to making impulsive, “gut-based” financial decisions they commonly regret later. Women, on the other hand, tend express higher levels of concern about personal financial issues, such as the well-being of children and grandchildren.
When it comes to saving for retirement, women have a slightly different perception of the obstacles standing in their way. Women are most likely to attribute inadequate retirement savings to a decline in income (43 percent), unexpected medical expenses (24 percent), job loss (21 percent), college costs (17 percent), caring for an aging parent (12 percent) or supporting and adult child (11 percent).
Men are more likely to cite a decline in income (58 percent), followed by college costs (22 percent), job loss (18 percent), unexpected medical expenses (17 percent), supporting an adult child (9 percent) and divorce (6 percent).
Our results suggest, among other things, that women are more likely than men to put the financial needs of others, such as adult children and aging parents, before saving for retirement.