Nearly Half of Women Lack Workplace Retirement Plan Access, Survey Shows

Half of American women are struggling financially today, and nearly half of those aged at least 25 do not have access to tax-advantaged workplace retirement plans to help them save, according to two surveys conducted jointly by the National Council on Aging and the Women’s Institute for a Secure Retirement. 

Top concerns among women were the cost of housing; Social Security and Medicare being cut; not having enough savings to retire; and outliving savings in retirement, according to the NCOA’s and WISER’s “What Women Say: Insights and Policy Solutions for Lifelong Financial Security” 

The research was conducted online with the help of Public Opinion Strategies and Lake Research Partners. The first survey was conducted online from February 10 to February 21 and collected 1,000 responses from women aged 25 and older. The second survey was conducted from March 27 to April 5 among low-income women aged 25 and older and collected at least 200 responses each from white, Black and Latina women. 

“It’s sobering to see such widespread financial insecurity among women in America,” said Ramsey Alwin, NCOA’s president and CEO, in a press release. “We know that a woman’s ability to age well starts early—not just when she retires. If women of all ages are finding it difficult to stay afloat today, their chances of aging with security are dim.” 

While 51% of women said they have an employer retirement plan, either from their current employer or a former employer, the remaining 49% said they do not have one.  

Low-income women are most at risk financially, with 77% saying they do not consider themselves financially secure and a similar number reporting they do not have emergency savings, according to the National Online Survey of Low-Income Women Ages 25+ by Ethnicity. 

A significant majority (79%) of low-income women also said they worry they will not have enough savings for retirement if their spouse or partner passes away. In addition, nearly two-thirds of low-income women said they are not confident they have the information they need to be able to plan and save for retirement. 

Retirement Worries  

Many of those surveyed showed trepidation in thinking about retirement as they manage more pressing needs, according to the research. Most women said they are “worried” and “uncertain” when thinking about retirement, and one-third of low-income women said they are “terrified,” according to both surveys. 

“When asked why they do not feel financially secure, women told us they do not have enough savings, inflation has caused a lot of pain to their wallets, and they have debt,” said Bill McInturff, a partner in Public Opinion Strategies LLC, in a press release. “Living paycheck to paycheck means that if an emergency were to occur, they would be wiped out financially.” 

Secondary reasons why women said they are financially insecure included having credit card debt, large mortgages or medical debt. Some said they live on fixed income and are struggling to survive, and others said if an emergency were to occur, they would be wiped out financially.  

The survey also found that Millennials, ages 27 to 42, were most likely to say cost of housing was their top concern, whereas Baby Boomers, aged 59 to 77 said Social Security and Medicare cuts were top of mind. 

A recent LIMRA study found that women who work with a financial professional are more confident and more prepared for retirement. The data showed that 40% of women who work with a financial professional report they feel very prepared for retirement, compared to 27% of women who do not work with one. 

Policy Solutions 

The NCOA survey also asked women to express their level of support for 13 potential policy solutions that could help their retirement readiness. The respondents in large part backed the solutions, with 90% of women supporting eight of the proposals. 

One popular suggestion was making the cost-of-living adjustment for Social Security benefits more accurately reflect the cost of housing and health care, with the proposal receiving 94% support from respondents. Providing a tax break for family caregivers to help cover out-of-pocket costs of providing care to a seriously ill, disabled or elderly loved one also received support from 94% of respondents. 

A majority of women supported providing free educational programs to middle-aged and older adults on how to save for retirement and make the most of their Social Security benefits.  

The Social Security Administration Board of Trustees announced in March that the combined asset reserves of the Old-Age and Survivors Trust Fund and the Disability Insurance Trust Fund are on track to become depleted in 2034—one year earlier than the previous year’s projection.  

Respondents also expressed 91% support in the creation of a new government-provided retirement plan that would allow workers whose employers do not currently provide a retirement plan to set aside their savings, tax-free, until they retire and start withdrawing funds from the account. 

“In an era of divided politics, the level of bipartisan support for these policies is quite notable,” said Celinda Lake, president of Lake Research Partners, in a press release. “It speaks to the real challenges facing women across the country—and the support they need and want.”