From IRI: Retirement Readiness and the Role of Women Financial Advisors
OVERVIEW
The role and presence of women in the workplace has changed dramatically in the past decades. Today, women are a significant — yet, many would argue, far from equal — part of the U.S. workforce.
- Women make up 47% of the total U.S. workforce,1 but just 4.4% of the CEOs of Fortune 500 companies are women.2
- Women’s salaries have increased 91% from 1970 to 2010,3 but women still make, on average, only $0.82 for every $1.00 made by men.4
- Women are the primary decision maker in 69% of retirement plans.5
- Women have longer life expectancies (and can expect to have longer retirements), yet have lower amounts saved for retirement.6
These dynamics are now manifesting themselves exponentially as women (Baby Boomer and Generation X) are becoming an increasing part of the current and upcoming retiree population. Earnings, savings, confidence and resource challenges can —and likely will — translate into retirement security challenges.
Read the complete report, Baby Boomer & Gen-X Womnen, here
Women need help, perhaps quite a bit more so than men, in juggling multiple financial priorities and goals, as well as making sure their retirement planning is adequate. The women of the Baby Boom (Boomers) — particularly the first, or “Early Boomer” women, paved the way for women in
the workforce today. Many Early Boomer women are retired already or on the cusp of retirement. “Late Boomer” women, like Generation X (GenX) women, are likely in their peak earnings years, and their planning must accommodate an increasing reliance on personal savings as an integral part of retirement income, as well as a the decline of traditional pensions, and changes in Social Security from both a retirement age perspective and the questions surrounding the long-term viability of the program itself.
IRI STUDIES
The Insured Retirement Institute (IRI) has studied women of both generations, as well as potential roles and opportunities for women as financial advisors. This report explores GenX and Boomer women, their actions and reactions in light the recent economic events, and their retirement planning behaviors and expectations. The report then examines the role of women as
financial advisors, and how women can potentially be encouraged to enter this growing field (expected by the Bureau of Labor Statistics to grow at twice the rate for all other professions from 2010 to 2020), and steer GenX and Boomer women toward a more secure retirement.
Key observations about women: Gen-X, Boomers & Advisors
- The economy has had a detrimental effect on retirement savings and planning for many women; many have stopped contributing to a retirement account, and still more have postponed plans to retire.
- Few have strong confidence that they will have enough money saved to last throughout their retirement years, and few are confident that they have done a good job of preparing financially for retirement.
- Their personal savings will be a significant source of retirement income, yet only half of Baby Boomer women with savings have $200,000 or more in retirement savings; only one-quarter of Generation X women have $100,000 or more saved for retirement.
- Most expect that they will juggle multiple sources of retirement income, and many have multiple types of investments, yet very few strongly agree that they keep up with financial and economic news. Less than half have worked with a financial advisor to plan for their retirement, yet for those who do seek advisor services, retirement planning is a top reason why.
- Working with a financial advisor has strong benefits, both qualitative (help, support, guidance, confidence) and quantitative (increased savings, elimination of savings barriers, credit behaviors).
- Women prefer to work with women advisors, yet women represent a minority of the advisor community.
- Challenges in recruiting women to the advising field include a general lack of interest and current job satisfaction.
- Women may not be “connecting the dots” about a career as a financial advisor, and not recognize that many aspects of the job directly appeal to their own work-values.The economy has had a detrimental effect on retirement savings and planning for many women; many have stopped contributing to a retirement account, and still more have postponed plans to retire
Read the complete report, Baby Boomer & Gen-X Womnen, here
