Gender matters in retirement planning.

Research from The Hartford Advance 50 Team of professional gerontologists and the MIT AgeLab shows that women are more concerned than men about the retirement road ahead—and with good reason. Within the larger economic and demographic context, women confront unique challenges in saving for retirement, making those savings last and protecting themselves from major events such as health problems or widowhood.

Highlights of the Study
Our research study shows that women are more worried than men about all retirement risks—except having enough to do in retirement. Their primary concerns center on inflation, health, the rising cost of health care, and the possibility that they will outlive their savings.

Such worries are founded in realities that pose both challenges and opportunities to women that differ from those for men. Statistics show that compared to men, women have lower retirement assets and income, longer life expectancies, and spend more time as sole decision-maker.

"Because of women's unique challenges, it only makes sense that they are worried about long-term financial matters," said Eric Waller, a retirement solutions consultant with The Hartford. "An adequate level of worry is helpful, provided it motivates us toward a change in long-term planning and lifestyle habits and behaviors."

Practical tips to move from angst to action
Waller recommends a few basic actions to help assuage retirement fears:
 

Start early	Start saving for retirement early and save often. Invest in a variety of asset classes and retirement savings vehicles such as individual retirement accounts and employer retirement plans. The earlier you start, the more your investments can grow, and the greater the tax-friendly advantages.
Actively participate	If you're married, actively participate in retirement planning with your spouse. Your retirement challenges may not be properly addressed if you don't participate, and new research shows the power of couples planning when it comes to financial planning.
Invest in health	Physical wellness is a valuable financial strategy. Invest in a healthy lifestyle so you can enjoy better health and lower medical expenses.
Estimate life expectancy	Most people underestimate their life expectancy. Do a longevity estimate and add a few years to create even more financial security.
Create a balanced plan	Create a retirement plan that includes guaranteed sources of income such as annuities, growth investments to keep up with inflation, and insurance, including life, disability and long-term care, to protect against significant losses.
Consult an expert	If you feel you lack the knowledge or confidence to do your own planning, you may benefit from working with a trusted advisor.

"Of course, these strategies won't solve everyone's worries, and every situation is different," noted Waller. "But women's focus on the long-term is a key strength. Most important, a qualified financial advisor can help to ensure that both spouses are actively engaged."

Read more
To learn more about the retirement research findings and women's unique challenges in preparing for retirement, refer to the Why Women Worry Research Report .

About the survey

• Conducted by The Hartford and the MIT AgeLab between November and December 2007.
• 1,194 telephone interviews were completed with pre-retirees and retirees between the ages of 45 and 74.
• To be eligible for the survey, individuals had to be English speaking, live in the continental U.S. and have some personal savings for retirement.

"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries. MIT AgeLab is not an affiliate or subsidiary of The Hartford.

Remarks by The Hartford and the MIT AgeLab experts are made in connection with the promotion or marketing of the matters discussed and are not intended to provide financial advice. As with all financial planning matters, you should consult a professional for advice.

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