Women: Why Saving For Retirement May Be Good For Your Health

Women are more financially powerful than ever before. Not only do they make up half of the U.S. workforce, but they are the primary breadwinners in 4 out of 10 U.S. families.* Yet, according to a recent survey released by TD Ameritrade Holding Corporation (NYSE: AMTD), 75 percent of Women said they have no specific retirement savings goal and nearly 1 in 4 Women (22%) over the age of 23 said they haven’t started saving for retirement yet, compared to only 13 percent of Men.

While women are becoming more financially powerful, some of their financial behaviors don’t necessarily reflect the same evolution. The survey revealed that 38 percent of Women said they started saving for retirement after the age of 34.

“Clearly gender roles have changed over the last 30 to 40 years, and women are contributing more to the financial well-being of their families. And yet, while we’ve seen a shift in the female mind-set in how they think about financial planning, we’re not seeing them actually take action in ways compared to their more engaged male counterparts,” said Lule Demmissie, managing director, investment products and retirement at TD Ameritrade, Inc., a broker-dealer subsidiary of TD Ameritrade Holding Corporation. “There are several legitimate reasons why this may be the case, including much of the financial industry’s poor performance in engaging women around financial planning. Resources like TD Ameritrade’s Life 2.0 and LearnVest are an important step in empowering women investors. Women have an opportunity to be much more engaged in the financial process. It’s important for them to take actionable steps in planning for retirement, particularly given their longer life expectancy.”

These behaviors may be contributing to why Women are feeling less secure about their financial futures. According to the survey, 30 percent of Women anticipate they will be financially worse off in retirement compared to their Male counterparts (23%), and 48 percent of Women said they aren’t looking forward to retirement. This lack of financial security about their future could also be impacting how secure they feel today.

“Taking control of your finances can be a bit overwhelming, especially if you don’t know where to begin,” said Demmissie. “Taking small steps to empower yourself can help you gain the confidence needed to make those important financial decisions. The good news is that women are realizing they need to be doing something different and we’re seeing that shift occur.”

When asked what amount Female investors wanted to have set aside for retirement, they said on average $1.8 million while Men said $1.3 million. In addition, Women said they expect to need retirement income for nearly 20 years, which, assuming they retire in their early 60s, is right on target since according to the U.S. Census Bureau the average life expectancy for women is 80.5 years.

Starting young and saving regularly can lead to a more satisfying retirement tomorrow, but that’s not all. It may alleviate stress today, according to the survey. Women who started saving for retirement before age 30 and who contribute regularly to their retirement savings feel less anxious (28% vs. 43%), less frustrated (20% vs. 36%), less regretful (9% vs. 20%), and more positive (42% vs. 27%) and satisfied (33% vs. 16%) about retirement compared to those Women who started saving after age 30 and who didn’t contribute regularly to retirement savings. This shows that saving for retirement early and regularly may indeed be good for your health.

For individuals looking to take control of their financial planning, TD Ameritrade recently launched Life 2.0, a website that offers investors access to free resources like retirement calculators and portfolio planners as well as information on how to make financial decisions that can help them meet their financial goals—whether they are recent college graduates, adding to their family or entering their retirement years.

LearnVest.com is another valuable resource that offers content, tools, and resources that help build the foundation for developing a financial plan. Additionally, through LearnVest Planning Services, a subsidiary of LearnVest Inc., investors receive customized financial plans delivered by the company’s in-house team of Certified Financial Planners™. These financial plans can help clients tackle their unique financial situations and work toward their goals. TD Ameritrade has teamed up with LearnVest to provide a six-month financial priorities plan for new and existing TD Ameritrade clients.

For helpful tips on retirement planning and more visit www.tdameritrade.com/life.AMTD-G

*The Boston Consulting Group “Women want more (in financial services),” Oct. 5, 2009.

About the SurveyAn online survey was conducted with N = 2029 U.S. residents from March 27-28, 2012 by Head Research on behalf of TD Ameritrade Holding Corporation. The sample was drawn from major regions in proportion to the U.S. Census: New England (5%), Mid-Atlantic (16%), South (25%), Midwest (22%), Southwest (12%), West (20%). In each region, half of the respondents were male (“Men” or “Male”) and half were female (“Women” or “Female”). Quotas ensured at least n = 500 respondents from each age cohort of interest to TD Ameritrade: Mature Generation (1930 to 1945): n = 502 (“Matures”); Baby Boomers (1946 to 1964): n = 504 (“Baby Boomers”); Generation X (1965 to 1976): n = 505 (“Gen X”); Generation Y (1977 to 1989): n = 518 (“Gen Y”). All respondents were required to be sole or shared decision makers with respect to planning and saving for retirement. The average time required to complete the survey was 10 minutes. The statistical margin of error in this survey is +/- 2.2%. This means that in 19 out of 20 cases, survey results based on N = 2029 respondents will differ by no more than 2.2% in either direction from what would have been obtained from the opinions of all adults born from 1930 to 1989 in the U.S.

About TD Ameritrade Holding CorporationMillions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how—bringing Wall Street to Main Street for more than 36 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information.

Brokerage services provided by TD Ameritrade, Inc., member FINRA ( http://www.FINRA.org )/SIPC ( www.SIPC.org)/NFA ( www.nfa.futures.org).

TD Ameritrade Holding Corporation and Head Solutions Group (U.S.) Inc. are separate, unaffiliated companies and are not responsible for each other’s services or policies.

About Head Research Head Research is a division of Head Solutions Group (U.S.) Inc., a leading market research partner for Financial Services companies in North America. With offices in New York, Toronto, and Montreal, Head delivers the deep customer insights that increase institutional knowledge and propel business action.

TD Ameritrade and LearnVest are separate and unaffiliated companies that are not responsible for one another’s services and policies. TD Ameritrade is not responsible for and does not endorse any financial or investment information, advice, opinions, and services accessed through LearnVest or other third-party financial or investment information or service providers. Please consult other sources of information and consider your individual financial position and goals before making an independent investment decision.

Copyright Business Wire 2010