Important points
In a recent survey, 50% of retired women said their retirement benefits were higher than they expected. Almost half (46%) of retired women said they retired earlier than planned, but this can have a negative impact on women’s finances as women typically live longer. Men: Due to the decline in pensions, more and more people are having to save their own funds for retirement.
For many women, their retirement vision may be far from reality, especially when it comes to how much their retirement savings will cost.
Half of the women surveyed in a recent study by CoreBridge Financial said their retirement benefits were higher than they expected, and just under half said they retired earlier than expected.
Experts say that retiring earlier than planned can have negative financial consequences, and early retirees may not have enough savings to collect Social Security benefits early. Your monthly check may be reduced because of your need. Women also have longer life expectancies than men, which means they may need to save more for retirement or save for a longer period of time.
“Women are starting to retire earlier than expected and are managing higher-than-expected expenses. These dual challenges make it easier for women to build retirement savings and maintain it throughout their lives. “This shows the importance of making an action plan early in your career,” said Terry Fiedler, president of retirement services at CoreBridge Financial.
Most people said, “I wish I had started saving sooner.”
The majority of women (63%) say they wish they had started saving for retirement sooner. More than 40% said they didn’t start prioritizing retirement until they were 41 or older.
Because investors benefit from the power of compound interest, those who start saving for retirement early in life may not need to invest as aggressively as those who start later. In fact, nearly a third (31%) of retired women surveyed said they wish they had put more money away from each paycheck into their retirement plan when they were working.
And while more workers were once able to rely on pensions, the responsibility for saving for retirement falls primarily on individuals. One-third (33%) of retired women said they received a pension, compared to 9% of non-retired women. “This reversal of ownership reflects a change in post-retirement circumstances,” the report said.
