Inflation has shaken women's retirement security and confidence, according to a Nationwide Retirement Institute survey of employer-sponsored retirement plan participants and sponsors.
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The study found that 62% of women are either expecting to retire later than originally planned or don't believe they will ever be able to retire because of inflation, compared to 47% of men.
This is a significant jump from 2021, when only one in four women expected to postpone or cancel their retirement due to the COVID-19 pandemic.
In addition to having to reduce savings contributions, women are also delaying their retirements to help their loved ones manage rising expenses.
More than one in 10 (15%) women who are expecting to delay or cancel their retirement say they are doing so because they had or have to financially support a family member or friend as a result of inflation.
These setbacks are taking a toll on women's futures and wellbeing. More than half (56%) of women feel worried when thinking about where they are at with their current retirement plan and financial investments, a 22-percentage point uptick from 2021.
And 57% of those who are delaying or cancelling their retirement due to inflation say it has negatively impacted their mental health, versus 48% of men.
In addition to navigating inflation, women also struggle to optimize their income in retirement.
For example, roughly half (51%) of female participants face challenges around turning their retirement savings into income in retirement. Only 4% of women are moderately or extremely familiar with retirement planning for decumulation.
However, more women than men are interested in solutions that can help them navigate challenges around inflation and better plan for retirement.
Almost all (92%) female plan participants say they would be at least somewhat likely to rollover a portion or all of their current retirement plan savings into a guaranteed lifetime income investment option if they were able to, compared to 83% of men. ■