LEXINGTON, Ky. (WKYT) – Data from a new survey has shown that more than twice as many middle-income U.S. Boomer women than men have been able to save more for retirement than expected during COVID-19. According to the report, 61% of Boomer women deposited more than expected in retirement accounts versus 26% of Boomer men. Independent retirement planner Josh Smith joined us on the newscast to discuss how the pandemic has affected the saving patterns of Boomer women.
“While most people have steady savings and retirement goals, a portion of Boomer women were able to exceed those goals,” said Josh Smith. “This could mean that their expected amount was lower due to other financial obligations brought on by the pandemic or that they were hoping to save the same but were still able to exceed that.”
One finding from the survey was that the number of Boomer women who say they have primary responsibility for making long-term financial decisions, such as making a financial plan and handling investment decisions, went down from 37% in 2019 to 31% in 2021. Another finding was that Boomer women surveyed saved more than anticipated due to the initial shock of COVID-19 and fears of a job loss or an uptick in their caregiving costs and responsibilities.
“Early indicators are that the pandemic has prompted both men and women to engage in their finances and pore over their financial situation to a degree that they may not have previously,” said Smith.
The survey found that 75% of pre-retiree women said the pandemic caused them to pay more attention to their long-term finances. Just 65% of pre-retiree men felt that way.
“Boomer women may be more compelled to save and prepare for retirement now because their retirement savings confidence has been shaken from the pandemic,” said Smith. “I would say to continue to invest in what you know.”
If you are looking to pursue an encore career, consider discussing with a financial planner to ensure it won’t hurt you financially. To see additional stories surrounding business and economic news for the Lexington area, visit https://www.WKYT.com/MoneyMatters/ and if you have a question for Josh send an email to firstname.lastname@example.org.
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