Female Millennials' concerns about having enough money in retirement are borne out in their anticipated age of retirement. Roughly a third (31%) of Millennial women think they will still be working at age 70, compared to 22 percent of Millennial men who feel the same way, suggesting these women are concerned they will need a few extra years of income to ensure a comfortable retirement."A variety of social and economic factors impact the way men and women view money, and our survey showed that this is already affecting the youngest generation of workers," said Catherine Golladay, senior vice president of participant services and administration at Schwab Retirement Plan Services. "It is important for women and men alike to have access to and take advantage of critical resources, such as professional 401(k) advice and financial wellness programs, to help close the gap in retirement savings confidence." The Confidence Gap According to the survey, there is a large disparity in confidence between Millennial men and women when they think about their own retirement preparedness. The data shows that more than half of Millennial men (55%) believe they are saving enough to retire when they want to, compared to 42 percent of women. This divide can be explained in part by the uncertainty associated with 401(k) investing. Sixty-one percent of Millennial women and 44 percent of Millennial men surveyed feel they don't know what their best 401(k) investment options are. Likewise, a full 75 percent of female Millennials and 59 percent of male Millennials wish they had an easier way to know how to choose their 401(k) investments. Saving for retirement is causing this generation plenty of stress as well. For example:
- Only 36 percent of Millennial women feel totally on top of their 401(k) investments, and 42 percent feel a lot of stress about choosing the right 401(k) investments.
- For Millennial men, 55 percent feel totally on top of their 401(k) investments, and more than one-third (35%) feel 401(k) investing-related stress.
Recognizing the importance of this vehicle to their financial future, most Millennials say they want help from a professional in managing their 401(k) investments. Millennial women are even more favorable to personalized 401(k) advice than their male counterparts, 79 percent compared to 67 percent.More Millennial women than men would also like help with specific aspects of retirement planning, like managing current expenses to save more money for retirement (45% of women and 25% of men) and calculating just how much money they'll need to save for retirement (65% of women and 52% of men). Professional 401(k) advice can also go a long way towards boosting Millennials' retirement saving confidence, especially for young women:
- Only a quarter (26%) of Millennial women feel very or extremely confident in their 401(k) investment decisions when working on their own, compared to 57 percent of Millennial men.
- With the help of a financial professional, the gap essentially disappears: 76 percent of men and 75 percent of women would feel very or extremely confident with the aid of investment advice.
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