Women More Concerned about Money in Retirement Than Men

September 16th, 2014, No Comments, be the first ».

A LIMRA Secure Retirement Institute survey reveals that among consumers aged 50 -75 with $100,000 or more in household income, women are more likely than men to be concerned about running out of money in retirement (46 percent vs. 35 percent).

As more workers are expected to fund their own retirement, women may be expressing concern for several valid reasons. The latest Bureau of Labor Statistics numbers show that as of the first quarter, 2014, the median wage for women is 83 percent that of men. Over a career, a lower salary, combined with breaks in employment to care for children and other family members, often leads to less retirement savings as well as lower Social Security income. These issues, as well as the fact that women usually live longer in retirement than men, compounds the challenges women face as they plan for retirement.

The good news, according to the LIMRA Secure Retirement Institute, is that women see value in getting professional advice, which could help them with investment and savings strategies to maximize their retirement assets.

Nearly 7 in 10 women believe financial advisors provide value beyond what they could achieve on their own, while only half of the men surveyed agreed with that statement. More women than men also said they trust advice from a financial professional and a majority of the women said that financial advice is worth the money. (See Graphic)

Saving for retirement is a challenge for both women and men but women often face greater obstacles throughout their working years, when professional advice can be invaluable. Working with a financial advisor can give women the strategies they need to ensure they have the financial wherewithal to achieve a secure retirement.

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By Ayo Mseka
Editor-in-Chief

 

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Only 46% of Middle-Market Consumers Own Individual Life Insurance

September 4th, 2014, Comments Off.

The need for the Life Insurance Awareness Month campaign currently under way is more important than ever—a recent LIMRA study reveals that only 46 percent of middle-market consumers own individual life insurance.

While 60 percent of Americans own group life insurance, the coverage often is less than individual policies and is only in place while the person is employed, according to LIMRA. One in four consumers in the study said they have no life insurance at all.

Middle-market consumers also said they were not financially prepared for the death of a family member, with the majority (51 percent) indicating they would need to make a drastic or significant financial change if that occurred.

“Life insurance is the one product that can help families keep a roof over their heads, provide for basic living expenses and allow time to recover and heal from the loss of a loved one,” says Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global. “LIMRA’s research shows that people do not fully understand the risks they take by not having adequate life insurance coverage. ”

Advisors play an important role in helping Americans ensure they have the life insurance coverage they need to protect their families, LIMRA notes. Half of middle-market consumers said they prefer to buy life insurance face-to-face with a financial professional. LIMRA’s study revealed that consumers want an advisor who can educate, listen and develop trust. In addition, 6 in 10 consumers said it is very important that their advisor represent a respected brand.

Life Insurance Awareness Month is an educational initiative developed by the Life Happens organization to remind Americans of the importance of including life insurance in their financial plans.

“Our research revealed that half of middle market consumers are interested in learning how much life insurance coverage they need,” says Kerzner. “Efforts like Life Insurance Awareness Month can be a catalyst to start that important discussion.”

For this study, the middle market was defined as consumers ages 25-64 with annual household incomes of $35,000 to $99,999.

For more information about Life Insurance Awareness Month, visit Lifehappens.org.

 

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