Women's confidence in a secure retirement shaken by pandemic
Impacts of COVID-19 -- including layoffs, furloughs and extended periods of working from home -- are intensifying existing challenges women face.
The COVID-19 pandemic has shaken the confidence of many Americans about their ability to achieve financial security in retirement, particularly women.
One-quarter of women surveyed by Transamerica Center for Retirement Studies said their confidence in their ability to retire comfortably has declined in light of the pandemic, compared with about 20 percent of men.
Impacts of COVID-19 — including layoffs, furloughs and extended periods of working from home — are intensifying existing challenges women face to financial security in retirement, such as lower pay and time spent out of the workforce for parenting and caregiving, the report said.
While half of both women and men surveyed said their confidence remains the same amid the pandemic, only 17 percent of women said they are very confident that they will be able to comfortably retire, significantly lower than 30 percent of men, and 12 percent of women say they are not at all confident, compared with 7 percent of men.
At least half of men and women said their employment has been impacted due to the pandemic. Women are more likely to have been laid off or furloughed from their job, while men are more likely to have had their hours or salary reduced.
Saving for retirement remains an important priority for both men and women amid the pandemic, although women are significantly more likely than men to say covering basic living expenses and supporting children are their greatest financial priorities during the pandemic. A similar percentage of women and men are working to pay off credit card debt and building emergency savings during COVID-19.
During the pandemic, 70 percent of women reported that they are saving for retirement through an employer or other retirement plan, which is significantly less than 81 percent of men. However, fewer women than men reported that they have dipped into their retirement savings as a result of the pandemic.
Both men and women said they plan to rely on savings if their earnings are negatively impacted by the pandemic. Women are significantly more likely to say they will rely on unemployment benefits (29 percent of women compared with 23 percent of men) and stimulus funds.
The majority of all respondents to the survey said they are staying positive, maintaining relationships with friends and family, and are enjoying life despite the challenges stemming from the pandemic. However, 44 percent of women reported feeling anxious or depressed and 35 percent of women said they are having trouble making ends meet amid the pandemic.
“During the pandemic, women are being stretched to their limits, in some instances balancing their job responsibilities with home schooling children and, possibly, caregiving for an aging parent or loved one,” the report said. “Right now, it is especially important for women to take care of themselves and their own well-being.”
The report, “Women and Retirement: Risks and Realities Amid COVID-19,” combined findings from TCRS’ annual retirement survey of workers conducted in 2019 with supplemental data collected in April and June of this year.
Kristen Beckman is a freelance writer based in Colorado. She previously was a writer and editor for ALM’s Retirement Advisor magazine and LifeHealthPro online channel. She also was a reporter for Business Insurance magazine covering workers compensation topics. Kristen graduated from the University of Missouri with a degree in journalism.
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