New AXA Study Shows More Women Saving for Retirement

By Tina Vasquez (Los Angeles)

According to a new study released by AXA Equitable Life Insurance Company, twice as many women than men said their top financial worry was not being able to save enough for retirement. This is for good reason, too. Though many were hit hard by the recent financial crisis, women in particular took a major blow, with fewer women than men able to recover their retirement savings investments.

One of the biggest champions behind this study, entitled Retirement in America: A Survey of Concerns and Expectations, was Barbara Goodstein, AXA’s Executive Vice President, Chief Innovation Officer. For the past three years, Goodstein was part of the team that conducted extensive research on women’s financial goals. According to the Goodstein, when considering the hardships women face as they get older, it should come as no surprise that they’re more concerned about retirement.

“Women are more concerned for their financial future because they find themselves in very different positions than men later in life,” Goodstein said. “In many cases, women make about 80 percent of what men make doing similar work. Over the span of their lifetime, men work about twelve years longer than women. Women live longer than men and 40 percent of marriages end in divorce. When you consider these facts, it becomes clear that many single women and widows are likely to face retirement alone and all of the financial difficulties that come with that.”

A Lack of Confidence and a Need for Guarantees

The study, which polled 1,000 affluent Americans, also found that 60 percent of women are not confident that investing in equities is a good idea, with nearly 50 percent admitting to a great lack of confidence when it comes to their ability to invest in equities. It was also discovered that most women are looking for one very specific thing in their retirement products: guarantees.

The study found that 89 percent of women think it’s “extremely or very important” for a retirement product to protect the principal of their investments; 85 percent think it’s extremely or very important for a product to protect their investments, even when the stock market goes down.

Simply put, women want to be guaranteed that they will make it to their golden years with their finances intact – and this was illustrated by the 81 percent of women polled who said they want a product that provides guaranteed income for life, regardless of market performance.

Financial Education is Key

Does such a product exist? Nothing in life – or finances – can be guaranteed, but according to Goodstein there is one thing that women can do to greatly increase their chances of faring any financial storm that life sends their way.

“This study is about promoting financial education, to women in particular, and there is overwhelming evidence that suggests speaking to a financial advisor is your best bet at making it through a financial crisis perhaps not unscathed, but not nearly as bad off as those who didn’t,” Goodstein said. “During the financial downturn, those women who didn’t recover any of their investments didn’t speak to a financial advisor. This shows that women who prepare properly fare better.”

If you’re convinced that you can go at it alone, consider these statistics: 21 percent of women who didn’t have an advisor canceled their life insurance policies during the downturn, compared to 9 percent of women who did have advisors. 41 percent of women who did have a financial advisor recovered during the downturn, compared to 28 percent who did not.

While the survey consisted of affluent Americans, Goodstein’s advice applies to all women who are quickly moving towards retirement and unsure of how they should invest or what they should do.

“Education on these matters transcends affluence,” Goodstein said. “The more prepared you are, the more predictable the outcome. The numbers provided by this study aren’t a measure of affluence; they’re a measure of preparation and education.”

Heeding the Advice – A Personal Story

For nearly 30 years, Dr. Linne Bourget has characterized herself as a “leadership futurist,” pioneering a new approach to getting the best out of employees with something she’s coined “positive appreciative strengths-based change leadership.” Over the years, Dr. Bourget has consulted with executives in business, government, and health care, creating “systems for rapid change.” Essentially, her entire career has been about positive reinforcement, playing to one’s strengths, and making the most out of any situation.

Even for someone as optimistic as Bourget, the past couple of years have been difficult to put a positive spin on. Like many American women, the doctor was hit hard by the economic downturn and is struggling to recover.

“I lost more than half my net worth in the recession; all my liquid savings/operating capital; all my investment properties and a chunk of my investments in the market. My business was wiped out. I am marketing in new market segments, trying to rebuild my business, but living in Phoenix has been a major body blow. Everyone here has been stripped bare and start-ups are struggling to find private capital since the banks are not lending,” Bourget said.

As previously reported, many women hard hit by the recession have decided to cut their losses and use this time in their life as an opportunity to start fresh. Bourget has made a conscious decision to keep trudging onwards with a new purpose: she’s going to practice what she preaches and play to her strengths.

“In a crisis, I always start with purpose and passion. For the last 30 years my purpose has been leadership, but my new passion is contributing to the economic turnaround of my country. This new focus is helping me make a contribution to green energy and adding more of these types of jobs to our nation,” Bourget said. “I have never worked so hard for so little money, but I’m trying to bring funding to companies who can make a difference in the green energy field. This is my new direction in life.”

Obviously, Bourget doesn’t appear to be retiring anytime soon, but for the legions of women who will soon begin their retiremetn, it’s critical that they take Goodstein’s advice.

Speaking to a financial expert and educating oneself is vital to financial well being. And though it’s true that securing one’s financial future requires making strategic moves and thinking critically about choices, it’s also important to remember that tenacity and resilience play a key role in remaining optimistic and sane during difficult times. Or, as Bourget said, “No matter how tough the money situation, you always have access to your strengths.”