Women Feel COVID-19 has Hurt Their Retirement Prospects

Women can experience many financial challenges throughout their lives and some of those were intensified during COVID-19. Reasons for the lack of financial confidence during COVID-19 included layoffs, furloughs, working from home, or balancing responsibilities of homeschooling children and work. According to an April 2020 study by Transamerica, women are more likely than men to say that COVID-19 has hurt their retirement prospects. One in four women surveyed said that they feel less confident about retirement than their male counterparts.

This overall lack of confidence reflects a long-standing trend. On average, women say they are more unsure about retirement than men. Why is that? Behind these retirement worries are a multitude of historical obstacles that can make it more difficult for women to amass savings:

• Lower pay rates
• Time out of the workforce for parenting and caregiving
• Divorce
• Longer life expectancy

“Only One in Five Women Are Very Confident About Retirement. Amid the COVID-19 pandemic, only 19 percent of women are ‘very’ confident that they will be able to fully retire with a comfortable lifestyle, which is significantly lower than the 28 percent of men who are ‘very’ confident, “ found the Transamerica study.

As you approach retirement, insecurity about your retirement future is underscored by the need for a financial plan you can understand. If you have a plan that has been constructed to meet your specific financial and retirement goals, you will feel more confident in your future. Check out our guide on Women and Investing for additional information.