Retirement takes a backseat with nearly half of this population taking early withdrawalsNew research from E-Trade examines changing attitudes about saving for retirement
March 16, 2020 — ARLINGTON, Va.–(BUSINESS WIRE)– E*TRADE Financial Corporation (NASDAQ: ETFC) today announced insights from its most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors.
As part of its Diversity in Financial Services Thought Leadership series, E*TRADE examines niche investor populations to create a more inclusive environment around personal finance and break down the barriers of taboo money conversations. In conjunction with Women’s History Month, E*TRADE analyzed trends among single female investors, a segment which is expected to make up almost half of the working female population between the ages of 25–44 in the next 10 years.1
- Single women show outsized interest in less conventional investments. Single females are more interested in marijuana securities (35%) blockchain and crypto-related securities (33%), and Environmental, Social, and Governance (ESG) investments (29%), compared to 26%, 24%, and 18% of the total population respectively. Almost two out of five single women (37%) are more likely to invest abroad than domestically, compared to 29% of the total population.
- Many take early retirement withdrawals. More than two out of five single women (43%) have taken early withdrawals from their retirement accounts, compared to one third of the total population (33%). They’ve dipped into their retirement account for a large purchase (17%), a medical emergency (15%), unemployment (12%), or education costs (12%).
- They show pronounced interest in emerging benefits. Single females are more likely to be interested in financial wellness benefits like student loan refinancing (24%) and education reimbursements (42%), compared to 17% and 34% of the total population, respectively.
“Many single people carry the financial burden of an entire household, which can make it difficult to prioritize and visualize long-term financial goals when you’re trying to stay above water on the day-to-day,” said Kerry McDermott, Senior Director of E*TRADE Advisor Services. “For those who are hesitant to get started, it bears repeating that it’s critical to create a foundation, however small. Over time, the power of compounding can help women build their wealth and put them on the path to financial security.”
About the Survey
This wave of the survey was conducted from January 1 to January 10 of 2020 among an online US sample of 907 self-directed active investors, composed of 121 single female investors, who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month), and passive (trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands.
In general, please rate your current interest in each of the following…
Blockchain and crypto-related securities
I am more likely to invest abroad than domestically this quarter.
Agree (Top 2 Box)
Neither agree nor disagree
Disagree (Bottom 2 Box)
Have you ever taken out money from an IRA or 401(k) before the age of 59.5 and, if so, for what?
Yes, to make a large purchase
Yes, because I became unemployed
Yes, to pay for education
Yes, for a medical emergency
Yes, to simply spend on myself or my family
Yes, to spend on a vacation
Which of the following benefits that a potential employer could provide would be the most important to you?
Insurance other than health (e.g., life, legal, and auto)
Employer stock at a discount or bonus
Student loan refinancing
About E*TRADE Financial and Important Notices
1. Morgan Stanley, “Rise of the SHEconomy,” Morgan Stanley, September 23, 2019. https://www.morganstanley.com/ideas/womens-impact-on-the-economy
Automatic Investment Plans and dollar-cost averaging do not ensure a profit or protect against a loss in declining markets.
E*TRADE Financial and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are national federal savings banks (Members FDIC). More information is available at www.etrade.com. ETFC-G
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