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OppenheimerFunds, Inc. Survey Finds: Over 90% of Women Say Saving for Retirement Is Their Number One Goal Yet Less Than Half of Those Surveyed Participate in a Retirement PlanPosted by Randy on: 2005-10-25 07:35:53 in category:
Retirement Headlines [ Print | Permalink / 0 Comment(s) ] OppenheimerFunds, Inc. Survey Finds: Over 90% of Women Say Saving for Retirement Is Their Number One Goal Yet Less Than Half of Those Surveyed Participate in a Retirement Plan OppenheimerFunds Provides Tips for Women on How to Get Their Financial House in Order NEW YORK, Oct. 18 /PRNewswire/ -- The 2005 Women & Investing Survey(1) by OppenheimerFunds, Inc., a leading asset management company, found that while the overwhelming majority of women (93%) say saving for retirement is their primary investment goal, 47% are not contributing to a retirement plan. In addition, 56% say they are not very or not at all prepared for retirement. However, the survey data shows that women are realistic about the financial challenges they will face in retirement. For example, 63% percent of female respondents believe they will live to be eighty years or older, 65% expect to outlive their spouse, and 41% say they will spend part of their retirement in a nursing home. "Women can expect to live an average of five years longer than men(2), which makes it critical that they plan for their retirement assets to last that much longer," said Lauren Coulston, Assistant Vice President, Advocacy and Training Manager at OppenheimerFunds. "Our survey data shows that women have a clear understanding of the importance of saving for retirement but they are not yet taking the financial steps necessary to ensure their own financial stability. In fact, 73% of the women surveyed said they spend more money on clothing, shoes and entertainment than they invest." Women make more conservative investment decisions ... Women have a lower risk tolerance for investing than men and may lack the knowledge to make informed investment decisions, according to our survey data. Outside of retirement plans, Certificates of Deposit (CDs) (24%), treasury and savings bonds (23%) were the top ranked investment vehicles for women while men ranked stocks (40%) and mutual funds (33%) as their investment vehicles of choice. One quarter of women compared to 44% of men are responsible for buying and selling stocks, bonds and mutual funds in the household and 64% of women say they do not understand how a mutual fund works. However, women are more likely to pay the bills (60%), balance the checkbook (67%) and maintain the family budget (54%). The investment confidence of women increases among those who work with a financial advisor, according to the survey. Almost three quarters (73%) of female investors say they are more knowledgeable about investing because they are working with a financial advisor and 50% of respondents who work with advisors are willing to take more risks with their investments. Sixty-six percent credit working with an advisor as making them feel more confident about having enough money for the future and 75% say it makes them feel more comfortable in general about investing. "Our research tells us that women are doing the bulk of the day-to-day management of the family finances, but may lack the confidence or knowledge to take a more active role in investing for the future," says Coulston. "Working with a financial advisor has helped women to overcome these obstacles and make them feel like more informed investors." Cash ranks as most hidden item from spouse Slightly more women (40%) than men (36.8%) maintain a checking, savings or brokerage account to which their spouse does not have access. For both men (24%) and women (26%), cash was named as the number one item that they are most likely to hide from their spouse. Regarding what purchases they are most likely to hide, entertainment (20%) and electronics (16%) topped the list for men while women named clothing (23%) and food (19%). Other survey findings ... -- Most women (76%) wish that they had learned more about money and investing growing up, however, only 30% said they teach their children about money. -- More than half of female respondents said the more money they have, the better they feel about themselves. -- When asked whether women would rather have more money or time in their day, 60% of women said more money compared to 54% of male respondents. -- The majority of women (55.5%) also described their attitude toward investing as "save for tomorrow" vs. "live for today." Tips For Women To Get Their Financial House In Order OppenheimerFunds provides the following tips for women to get their financial lives on the right track towards saving for the future: -- Know what you have to work with -- Gather your bank statements, bills, investment accounts and retirement accounts and figure out your net worth. What is your annual cash flow and how much are your total expenses? Knowing how much money you have is a critical first step to building a financial plan. -- Keep an emergency fund -- How much would you need to support yourself over a three- or six- month period should you lose your job or in case of an emergency? Set aside this amount of cash in a safe place such as a savings account or money market. -- Pay yourself first -- While paying bills each month, write a check to your savings account. Although 10% of your earnings should ideally go to savings, even a small amount will add up over time. Our research shows that more than half of respondents said if they knew that saving just $50 a month over several decades would provide them with more than $500,000 when they retired, they would be strongly persuaded to start saving for retirement. -- Dump your debt -- Add up and prioritize your debt. Try to lower your interest rates by negotiating with your credit card company or transferring to a lower rate card. Focus on paying off the card with the highest rate first. -- Plan for "life events" -- Do you plan to buy a home, pay for a wedding, have a baby, get a master's degree or start a business? Will you have to take care of an elderly parent or pay for your child's college? No matter at what stage of life you are, the price tags and time frames of these should be mapped out in a financial plan. -- What's important to you? Does traveling for a month in Europe this year mean putting off purchasing a home for the next two years? Prioritize your goals and be realistic about how much money you will need to reach them. -- Read. Ask. Listen. Learn. Keep up on the economy and financial markets on TV or in your local paper. Note questions to ask your financial advisor during your next meeting. -- Work with a financial advisor -- The best way to bridge the gap between your current and future financial goals is to make your money grow. How much you will need it to grow depends on the amount of time you'll need to achieve your goals, how much you plan to add to your savings and the rate of return you can expect from your savings. We suggest working with a financial advisor who can help you develop a customized plan for making your money work for you. About OppenheimerFunds, Inc. OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. As of September 30, 2005, OppenheimerFunds, Inc., including subsidiaries and controlled affiliates, managed more than $190 billion in assets, including mutual funds having more than 6 million shareholder accounts. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks and charges and expenses. Fund prospectuses contain this and other information about the fund, and may be obtained by asking your financial advisor, calling us at 1.800. 525.7048 or visiting our website at http://www.oppenheimerfunds.com . Read prospectuses carefully before investing. Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, hedge funds of funds, qualified retirement plans for individuals and corporations. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service. OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10080. OppenheimerFunds, Inc. is a member of the MassMutual Financial Group and is not affiliated with Oppenheimer & Co, Inc. or Oppenheimer Capital. (1) The survey, which was conducted by Insight Express, examined the investment behaviors, knowledge and attitudes of 1,000 female and male investors. OppenheimerFunds conducted its first major research study on women and money in 1992, and has been a leading advocate for women's financial independence since then. The Company regularly conducts studies on women and their investing habits. (2) Source: Department of Health and Human Services, 2003. SOURCE OppenheimerFunds, Inc. Web Site: http://www.oppenheimerfunds.com Those looking for early retirement we recommend. http://www.retirement-plan.us/retire_early.php |
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