Nearly two-thirds (62 per cent) of U.S. women say they expect to retire later than originally planned or not at all due to rising inflation, a significant increase from 25 per cent in 2021, according to a new survey by Edelman Data and Intelligence on behalf of Nationwide Mutual Insurance Co.
The survey, which polled more than 1,000 U.S. plan members, found just 47 per cent of men said they plan to delay retirement.
More than half (57 per cent) of women who said they’re delaying or cancelling retirement reported negative impacts to their mental health, compared to 48 per cent of men. Similarly, 56 per cent of women said they’re worried about the current state of their retirement savings, up from 34 per cent in 2021.
Read: 41% of U.S. women expect to retire at age 70, older or not at all: survey
Also among female respondents, 51 per cent said they’re facing challenges related to decumulation and just four per cent said they’re moderately or extremely familiar with decumulation. Nearly a fifth (15 per cent) who said they expect to delay or cancel their retirements are doing so because they’ve had to financially support a family member or friend.
“Inflation has made saving for retirement difficult for many Americans, but we’re seeing the effects among employer-sponsored retirement plan participants greatest felt by women,” said Amelia Dunlap, vice-president of retirement solutions marketing at Nationwide, in a press release. “In addition to having to reduce their retirement savings, women often have the responsibility of serving as the caretaker for loved ones.
“It’s critical that plan sponsors help employees keep focused on the longer-term view, avoid emotional investing or reactions and offer solutions that will help them stay on track for their goals.”
Read: How can pension plan sponsors help women hit their retirement readiness stride?