In a survey of 1,000 American adults, nearly half of all women do not know how much money they will need for retirement -- and 56 percent said they plan to rely on their husband, inheritance or a stock market windfall to support them during their golden years. The Women and Retirement survey, commissioned by MDRT, an international association of the world's best life insurance and financial services professionals, points to the growing need for women to realize the essential role retirement planning plays in their future.

"These findings uncover a discrepancy: although women are worried about their retirement, they are passively relying on sources beyond their control to provide for their retirement," said Michelle Hoesly, a 21-year MDRT member who specializes in retirement planning. "Even as more women build careers in the business world, young women remain as uninformed about retirement finances as older women."

The survey revealed that nearly 60 percent of women do not realize that they need to save more money than men for retirement -- a clear indicator that women remain unaware of the gender-specific financial issues that are likely to impact their retirement savings. Not only do women generally outlive men by an average of seven years, but they also earn considerably less money throughout their lifetimes due to childbearing and family responsibilities, and wages that amount to an average of 30 percent less than men. This leads to smaller pensions and social security payments. Divorce or legal separation can also complicate women's financial futures.

Additional key findings include:

• Women are unprepared for retirement: Nearly one quarter of women think $100,000 or less will be enough to support them for a retirement spanning 20 years or more. Young women aged 18 - 29 plan to save less for retirement than older women.  
• Women's investment style further undermines their retirement planning: Nearly half of women have mostly conservative investments, while twice as many men as women hold mostly aggressive investments. Therefore, women's retirement accounts may have smaller balances overall.  
• More than two-thirds (70 percent) have retirement concerns, particularly about not having enough money to maintain their current lifestyles. High costs of living and medical expenses were listed as the primary barriers to saving. 

"When it comes to retirement planning, women face unique financial challenges that, if not appropriately addressed, could put them in a very difficult situation in the long-term," said Hoesly.

Steps women can take to overcome these pitfalls, Hoesly says, include:

• Start saving early, and contribute the maximum amount to retirement plans;
• Focus on retaining and rolling over retirement funds when changing jobs;
• Obtain disability coverage to safeguard against medical emergencies -- thus avoiding a raid on retirement savings;
• Establish a credit history in their own name;
• Talk with a professional financial advisor to help assess their situation and goals, and then work together to develop a long-term plan to reach them.

The survey was conducted for MDRT by ORC International in spring of 2001. For more information about women and retirement planning, and the detailed results of the Women and Retirement survey, visit www.soundfinancialplan.com.

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