Prime Highlights:

Only 19% of retired women claim their retirement is as expected, and 26% said it is far different from what they expected due to unanticipated expenses and early retirement.

63% of retired women would have started saving earlier, 42% of retirees made retirement planning a priority at age 41 or older.

Only 51% of the retired women have good or very good financial health, and most express concern about the gap between expectations and realities.

Key Background:

According to a new study by Corebridge Financial, there is a big gap between what women have thought about and what they have experienced in retirement. In fact, Corebridge Financial states that only 19% of retired women report that their retirement life has turned out the same as planned, and 26% say it’s very different from what they had envisioned. The main causes of surprise included higher costs than intended and early retirement, which happened to 50% who claimed to incur more expenses than expected and 46% who indicated retirement earlier than expected.

Despite these disadvantages, 51% of the retired women say their financial health is good or very good. Many however wish they had made other earlier decisions. Most pronounced is the 63% who wish they had started saving sooner; they actually started only at age 18-29. The worst part is 42% do not intend to start until they reach age 41 or later and 20% have yet to start.

Terri Fiedler, head of retirement services at Corebridge Financial, noted that it was encouraging that over half of the retired women feel financially secure but the gap between expectation and reality is still vast. The survey also reveals that working women are not doing so well, as only 46% of them feel confident about their financial future.

Common financial concerns include inflation, security in retirement, and fear of outliving the savings. Ways to close that gap between uncertainty and financial stability include working closely with financial professionals, saving for retirement as soon as possible, and taking the maximum benefit in employer-sponsored plans.

The study concluded that women want to start early planning and make early prioritizations of their future financial life, and according to Corebridge Financials, this growing demand by women is huge. Improving the retirement outcome of women calls for research on retirement needs, starting to save early, preparing for lifetime income, and consulting professional financial advisers for advice. Results show that financially healthy women are consultants. While 59 percent of the women with advisers report good financial health, only 33 percent of women without advisers do so. The report urged women, in preparation for retirement, to plan finances during their careers for a safe and comfortable retirement.