Representing Half of all Individuals with at Least $500K in Investable Assets, Women Remain Underserved

The Insured Retirement Institute (IRI) today released its exclusive report Women and Retirement, "From Need to Opportunity: Engaging this Growing and Powerful Investor Segment."  

The report found that when planning for retirement, the opportunities presented by female clients are tremendous. With more than half (50.8%) of working women employed in management or professional occupations, more than a quarter (25.9) earn more than their husbands. In addition, women represent nearly half of all individuals with at least $500,000 in investable assets, with 95% of all women identifying themselves as being financial decision makers in their households.

"From managing a corporate bottom line, to determining the family finances, women increasingly are the decision makers when it comes to important financial situations," said IRI President and CEO Cathy Weatherford. "Yet our report shows that as they look toward their retirement, they are less confident, citing concerns about outliving their retirement savings. Financial professionals have an opportunity to address this retirement apprehension, but they need to consider the unique priorities women have when selecting an advisor.

"Interactions must be personal, and a holistic planning approach is paramount to women - but it must include the protection of both principal and earnings," Weatherford continued. "By incorporating guaranteed retirement income strategies within a retirement plan, advisors can help address the potential retirement shortfalls that face even the most affluent women."

IRI's Women and Retirement report also found that:

• Women are increasingly open to receiving assistance from financial professionals, with 50% saying they need help in some areas of managing their finances, up from 33% in 2004.
• Women tend to prefer qualitative means when selecting a financial advisor, with six out of 10 (61%) citing a feeling of trust and respect as the top factor. More affluent women consider it imperative that an advisor takes a long-term view of their needs.
• Between 80% and 90% of women place a high value on income, principal or investment guarantees during retirement, opening up the advisor/client discussion of retirement income solutions that incorporate annuities as an element.
• The average life expectancies of women are approximately three to four years longer than those of men, leading to increased costs of living in retirement, most notably long-term care, on retirement incomes that are between 56% and 82% of that of their male counterparts.
• When looking to a financial professional for assistance, feelings of trust and respect for an advisor are just as much important to women, if not more so, than the advisor's historical investment returns.

The full findings of Women and Retirement can be found HERE.