Nearly one in four divorced, separated or widowed U.S. women have less than one month’s worth of retirement savings, compared to fewer than one in 10 men, according to a new survey by PensionBee.
The survey, which polled more than 1,000 employees, found following a marital transition, women (43 per cent) are twice as likely as men (21 per cent) to report having a loose retirement plan and may lack clear retirement goals. Just nine per cent of divorced, widowed or separated women report working with a financial advisor on their retirement, compared to 18 per cent of men undergoing the same life transition.
Read: How employers can help shrink Canada’s gender pension gap
Among separated, divorced or widowed women, nearly a quarter (23 per cent) said they couldn’t survive for more than one month on their retirement savings. They were also less likely to increase their retirement contributions in the coming year (38 per cent compared to 57 per cent of separated, divorced or widowed men) and to max out their annual contribution limit for at least one retirement account (four per cent compared to 11 per cent).
Nearly a quarter (23 per cent) of all separated, divorced or widowed respondents said they’ve made a hardship withdrawal from their retirement savings account, compared to 17 per cent of married respondents. Only 13 per cent said they contribute enough to receive their full employer match compared to 24 per cent of married workers, while just seven per cent said they’ve maxed out annual contribution limits, compared to 19 per cent of married respondents.
The survey also found while 50 per cent of married people reported a positive view of retirement, that percentage drops to 28 per cent for women and 31 per cent for men following divorce, separation or the death of their partner.
Read: How DC plan sponsors can support women’s financial confidence