Inside: Women and Financial Literacy
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Time to Take Retirement into Their Own Hands: Over 80 Percent of Women Fail Retirement Income Literacy Quiz

Only 18% of retirement-age women can pass a basic quiz on how to make a nest egg last in retirement. Nearly twice as many retirement-age men are able to pass, and although those numbers are still grim, this underscores the trouble women face in their own retirement knowledge. Even more worrisome is that despite low retirement literacy, the majority of women (55%) are still extremely confident that they and their spouses would have enough money to retire comfortably.

These findings are part of the RICP®Retirement Income Literacy Survey from The American College of Financial Services – the most comprehensive survey exploring the drawdown phase of Americans’ financial lifetimes, when people are no longer receiving a paycheck from their jobs but must still fund their lifestyles during a potentially lengthy retirement.

Women are aware that they have poor retirement literacy – yet this does not impact their confidence in retirement. Only a third (33%) of women stated they were extremely knowledgeable about retirement income planning, compared to 44% of men. However the majority of women (55%) reported they were extremely confident they would have enough money to live comfortably throughout retirement. Click here to read more.

Women Report More Financial Stress About Retirement Savings Than Men

A new report by MassMutual raises questions about the current effectiveness of retirement savings initiatives and programs in the United States, as the overwhelming majority of respondents, roughly 72 percent, agreed that they are not saving enough for retirement. This is alarming, but not all that surprising. Many Americans struggle to meet their current expenses and needs, let alone save for the future. Perhaps more troubling, was the finding that women were three times more likely than men to report that they could not afford to save for retirement. This feeling of unpreparedness for retirement also appears to be impacting women in other areas outside of retirement savings. In fact, women were more likely than men to report that their financial concerns were causing them added stress, limiting their social activities, affecting the quality of their family’s medical care, and negatively impacting their relationships.

Women were more worried about the financial health of their families than men, more worried about the current political atmosphere than men, and felt less prepared for retirement than their male counterparts.  This adds up to increased stress.  The report also asked men and women about the types of employer-sponsored programs that would interest them and would help them feel more financially secure. While both men and women reported that they were interested in more financial planning services from their employer, women were more likely than men to want those services. Click to read more.

20 wealth-building terms women should know

Do you know what FICO, asset allocation and capital gains mean? Better yet, do you know what they have to do with your own finances? If you didn’t study economics or finance in college, then there’s a good chance that these terms are unfamiliar to you. Yet, gaining a good grasp of key financial terms is the foundation for smarter financial decisions and a lifetime of building wealth for women.

It’s in women’s own best interests to take financial literacy seriously. Seventy-five percent of women will be single by the age of 75. Women live longer than men and will need a bigger nest egg to sustain more years spent in retirement. Yet, women continue to score lower than men in financial literacy tests. In fact, more than 80 percent of women between the ages of 60 and 75 failed a 2017 Retirement Income Literacy Quiz. Click here to see what the terms are.

The PFW Scale™ is an effective way to evaluate employee financial stress. Click here to learn how your organization can benefit by using the Personal Financial Wellness Scale™
Personal Financial Employee Education Fund (PFEEF)
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