New study outlines women’s financial vulnerabilities before and during the pandemic
One in four women workers (24 percent) who are employed or recently unemployed say their confidence in their ability to retire comfortably has declined amid the coronavirus pandemic, according to Women and Retirement: Risks and Realities Amid COVID-19, a study released by nonprofit Transamerica Center for Retirement Studies® (TCRS). However, only 17 percent of women say they are “very” confident they will be able to fully retire with a comfortable lifestyle.
“2020 marks the one-hundredth anniversary of women’s right to vote in the U.S. Since then, women have made great strides in educational achievement and career opportunities. Despite this progress, they continue to be at greater risk than men of not achieving a financially secure retirement,” said Catherine Collinson, CEO and president of Transamerica Institute® and TCRS.
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Women and Retirement: Risks and Realities Amid COVID-19 examines women’s finances before and during the pandemic, and their expectations about retirement. It is based on findings from TCRS’ 20th Annual Retirement Survey, which comprises a supplemental survey conducted in June 2020 and a broader survey completed in late 2019.
Amid COVID-19: Work, Finances, and Retirement
“A woman’s path to a secure retirement is filled with obstacles, such as lower pay and time out of the workforce for parenting or caregiving, which can negatively impact her long-term financial situation,” said Collinson. “Amid the pandemic, these challenges have intensified with layoffs, furloughs, and extended periods of time working from home.” As of June 2020, the survey finds:
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- Fifty-two percent of women workers have experienced one or more impacts to their employment situation as a result of the pandemic, including reduced work hours (24 percent), layoffs (16 percent), reduced salaries (13 percent), furloughs (13 percent), and/or early retirement (four percent).
- Women face competing financial priorities. Almost six in 10 women cite paying off some form of debt as a financial priority (59 percent). Other financial priorities include saving for retirement (50 percent), building emergency savings (44 percent), and just getting by to cover basic living expenses (33 percent).
- Seven in 10 women are saving for retirement (70 percent), including those saving in a current employer’s 401(k) or similar plan (49 percent), outside of work (31 percent), and/or a former employer’s plan (nine percent).
- Despite the challenges amid COVID-19, women, for the most part, are staying positive. More than four in five women have close relationships with family and/or friends (86 percent), consider themselves to be a generally happy person (85 percent), and are enjoying life (84 percent). However, 44 percent often feel anxious and depressed, while 35 percent are having trouble making ends meet.
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