68% of women anticipate a U.S. recession, according to a new study from HerMoney and the Alliance for Lifetime Income released today. But despite the economic uncertainty, women continue to make significant efforts to safeguard their financial destinies. According to chapter six of the “State of Women in 2022” research, 92% of women intend to retain or even increase their retirement contributions to 401(k)s and IRAs.
Despite anticipating a recession, “women aren’t letting that hamper their long-term financial goals,” according to Jean Chatzky, CEO of HerMoney and a fellow at the Alliance for Lifetime Income. Not only do women pledge to continue saving for retirement, but two-thirds also intend to “double down” on their assets and develop the mindset that now is the ideal time to buy.
The reason is that women are prepared to behave conservatively elsewhere if the United States does experience a recession. Solely 5% of women would take out a loan for a large purchase, while 71% say they will completely postpone large expenditures, and 24% say they would only pay with cash.
Women in Control
80% of women say they would rather make their own financial decisions than leave it up to a spouse. It’s the same for those who are married and single. They don’t mind splitting up the role of the primary provider, though, with 51% being the primary breadwinner themselves and 49% having a partner who is the primary breadwinner.
In addition, taking charge of their time is another primary concern for women. An interesting finding is that the majority (61%) would rather have 10% more time and make 10% less money than the opposite. Even more people (74%) would instead work in a job with low stress and make less money than work in a position with high stress and make more money.
Trading Offs and Working Women
Women are less willing to make long-term sacrifices than males, but a sizable majority of working women are prepared to do so to secure their financial prospects. For instance, 70% of working women would contribute the maximum amount to their 401(k) plan each year rather than use $20,500 to achieve a short-term objective.
They are focused on the final result. Similarly, women are choosing saving over going on shopping binges. 80% of working women would contribute the maximum amount to their IRA each year rather than spend $6,000 on a luxury good or experience (20%).
Most working women report that limiting their purchases of luxuries is the biggest compromise they make to save for retirement (79%). The generation of millennials is most likely to make other compromises. Compared to Gen Xers and Baby Boomers, they are substantially more likely to limit memberships and subscriptions (61%) and make housing trade-offs (48%) than either group.
When taking Social Security after retirement age, the majority of working women (85%) say they would rather wait so that their payment grows over time (15%).
Women are taking charge of the household’s retirement planning, but maintaining their savings into retirement poses a significant obstacle to their financial security. According to the research, although over three-quarters of women (73%) know the actions to follow to accumulate a retirement nest egg, less than half (47%) know how to make their money endure during retirement.
Social Security, a pension, or an annuity is the only three types of protected income available. However, most women studied do not connect an annuity with protected income. Only 3% of women believe buying an annuity is crucial for protecting their future since they need more awareness.
Jean Statler, CEO of the Alliance for Lifetime Income, says their “research shows that most women want to have a portfolio that delivers retirement income they can rely on, especially as they age.” A staggering 83% of working womenâ€â€and an even greater 88% of Baby Boomersâ€â€would pick a portfolio with a guaranteed retirement income over one with a riskier chance of higher profits. Women have repeatedly expressed to us how vital saving is to them and how having enough guaranteed income to endure into retirement gives them peace of mind.
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Mark Zimmerman, Sr currently is the Managing Member of Aurifex Financial Group, LLC. Aurifex Financials mission is to help clients realize their vision of living life on their own terms by providing credit repair, financial counseling, insurance solutions, and money lending services. This is accomplished by using a holistic approach. After hanging up his uniform after 22 years of service in the military, Mark still had a desire to help others, so he created Aurifex Financial.
As part of Accredited Financial Counselor (AFC) credentials, Mark had to obtain and document over 1000 hours of helping others which was accomplished by helping hundreds through a local non-profit. As an independent Insurance Agency, Mark is licensed in property and casualty, home, business, health, Medicare, life, and annuity products.
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