Data and Research March 28, 2018

Retirement Saving More of a Priority for Men than Women

For both sexes, becoming serious about saving for retirement doesn't usually happen until one's 40s or 50s.

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Sixty percent of men say that saving for retirement is their top financial priority, according to the Willis Towers Watson 2017 Global Benefits Attitudes Survey. In contrast, only 44% of women say the same. Instead, women say their top financial priority is meeting daily living costs (64%) and paying off debt (57%). The survey also found that for most people, saving for retirement does not become pressing until their 40s or 50s, when other financial needs have been met.

Seventy-eight percent said retirement security is an important issue, up from 52% in 2013. Among Baby Boomers, 87% said retirement security is an important issue, and among Gen Y employees, 71% said so.

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While 57% said they are confident they will have enough financial resources to live comfortably 15 years into retirement, that is down from 69% in 2015. While 54% of men think they have enough resources to live 25 years into retirement, only 39% of women share this same view.

Thirty-seven percent of workers say they will work past age 70, up from 30% in 2015. Only 26% think they will retire before age 65, down from 29% in 2015. Struggling employees—those worried about their short- and long-term finances—are feeling the greatest pressure to retire later. Sixty-six percent of this group do not expect to retire before age 70. Thirty percent of the respondents were identified as struggling.

Seventy-four percent said they will be worse off in retirement than their parents, and 68% expect Social Security benefits to be much less by the time they retire. Another 66% think Medicare and Medicaid will also be pared back. Fifty percent expect to retire from their main job but find some other form of work before fully retiring.

“Saving for retirement is a significant challenge for the vast majority of working Americans,” says Shane Bartling, senior consultant at Willis Towers Watson. “Varying financial needs make it difficult for many men and women to build a retirement nest egg.”

Pat Rotello, senior consultant at Willis Towers Watson, says with more people planning to retire later, employers need to reevaluate their retirement plans and well-being initiatives. “In fact, it wouldn’t surprise us to see more employers develop and implement financial well-being programs to help their employees achieve their retirement and financial goals,” Rotello says.

Willis Towers Watson surveyed more than 30,000 private sector employees in 22 countries. In the U.S., the survey was conducted among 4,983 people last July and August.

Benefits March 28, 2018

Health Care Expenses Eating into Savings

Forty-one percent of Americans polled say they decreased contributions to a savings plan because of health care expenses.

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While more than $3.3 trillion—nearly one-fifth of the gross domestic product—is spent on health care in the United States, The West Health Institute and NORC at the University of Chicago poll finds Americans report that costs are a factor in a number of decisions they make about their care, and health care costs are affecting their finances.

Thirty percent report they have had difficulty paying for basic necessities, like food, heat, and housing, due to medical costs, while 36% say they have had to use up all or most of their savings. Nearly one-third (32%) report borrowing money or increasing credit card debt, and 41% say they decreased contributions to a savings plan because of health care expenses.

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The survey also finds Americans say they often go without needed care or choose less expensive options due to costs, which could led to more serious illnesses down the road. For example, 40% say they skipped a recommended medical test or treatment in the last 12 months due to cost, and 32% were unable to fill a prescription or took less of a medication because of the cost.

Sixty percent of those who report skipping a recommended test or treatment due to cost say they fear the cost of a serious illness, compared to 27% of those who have not reported doing so. When it comes to fear of getting a serious illness itself, 47% of people who have skipped a test or treatment due to cost are afraid of becoming ill, compared to 24% of those who have not done this.

The nationwide survey was conducted February 15 through February 19, 2018, using the AmeriSpeak Panel, the probability-based panel of NORC at the University of Chicago. Online and telephone interviews were conducted with 1,302 adults. The survey report is here.

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