Menu Our services in the selected location:
  • No services available for your region.
Select Location:
Select Location
    Remember my selection
    Your browser is out of date.

    Explore how we can help you

    Contact Us

    GSAM Insights

    WOMEN & RETIREMENT SECURITY: DIGESTING THE DATA

    Navigating the Financial Vortex

    December 7, 2022  |  7 Minute Read

     

    This year’s Retirement Survey & Insights Report, Navigating the Financial Vortex: From Retirement Readiness to Retirement Income, highlighted the challenges that working and retired individuals face as they save and invest for their retirement, especially in today's environment. The report shared detailed insights on prominent retirement trends experienced by generation and outlined potential difficulties these age groups may face on their retirement journey.

     

    In this supplemental report, we take a deeper look at the gender differences from both working and retired Americans to better understand the challenges women face on their retirement journey.

    Half of Working Women Believe Their Savings are Behind Schedule

     

    More women reported that their retirement savings are behind schedule relative to men. While more retired women are living on limited income, this data illustrates that some working women may be on a similar trajectory. Half of working women reported being behind schedule vs. 35% of men and almost a quarter of working women reported feeling they are very behind schedule.

     

    In aggregate, 47% of working women reported feeling they are on track or ahead of schedule (vs. 64% of men).

     

     

    Where would you say your retirement savings are at this moment?

     
    Household Net Worth Near All-Time Highs

    Financial Stress From Managing Retirement Savings

     

    Some women expressed less comfort managing their retirement savings. The majority of women (63%) reported stress or anxiety managing their retirement savings, while 52% of men reported experiencing a similar level of concern. Notably, 31% of women reported that managing their own retirement savings is very stressful.

     

     

    How much financial anxiety/stress do you feel managing your retirement savings?

     
    Household Net Worth Near All-Time Highs

    Lower Confidence in Meeting Retirement Saving Goals

     

    Women respondents (47%) were less confident than men (68%) in meeting retirement savings goals. Additionally, 33% of women reported concern that they will be able to meet their retirement goals, while 19% of men reported similar concerns. Of course, one’s confidence in their ability to reach their retirement goal is not the same as their actual ability. Empowering and building confidence is an important part of retirement planning support.

     

     

    How confident are you that you will be able to meet your retirement goals/needs?

     
    Household Net Worth Near All-Time Highs

    The Financial Vortex Has Greater Impact on Women's Ability To Save For Retirement

     

    In the Retirement Survey & Insights Report 2022, we examined how the financial vortex affected workers at a generational level. Generation X, Millennials and Generation Z were increasingly affected by financial responsibilities in their ability to save for retirement, in part due to the transition from defined benefit plans to defined contribution plans.

     

    From a gender perspective, women reported that financial responsibilities have a greater impact on their ability to save for retirement than men across all factors. This chart illustrates the need to successfully navigate competing short-term needs and the long-term need to reach retirement with sufficient savings.

     

     

    How strongly do the below affect your ability to save for retirement? (Select from extremely, very, moderately, slight and did not affect).

     
    Household Net Worth Near All-Time Highs

    Women are More Likely to Take Time Away from the Workforce for Caregiving

     

    Women are often the primary childcare or elder care provider for their family. Caregiving can have a meaningful impact on retirement savings because an individual may often need time out of the workforce. Not working can have multiple long-term impacts: no current income, no earned income from a Social Security perspective (which lowers your overall Social Security benefit), and more limited ability to save. In addition, there may be immediate financial responsibilities to support the family member.

     

    According to our study, 45% of working women (compared to 40% of working men) reported taking time away from the workforce to provide care. Both are significantly higher than retired respondents, where 36% of women and 21% of men reported taking time out of the workforce for caregiving.

     

     

    Have you ever needed to take time away from the workforce to provide care for a family member?

     
    Household Net Worth Near All-Time Highs

     

     

    Have you ever needed to take time away from the workforce to provide care for a family member?

     
    Household Net Worth Near All-Time Highs

    Women Are More Likely to Take Time Away from the Workforce for Caregiving

     

    For both men and women respondents, we see that almost half reported having a financial hardship in their career that caused them to stop saving for retirement. Of those women who experienced a financial hardship and needed to stop saving for retirement, 22% reported needing to stop saving for one year or more.

     

     

    Have you experienced a financial hardship that caused you to stop saving directly for retirement (e.g., in your 401(k))?

     
    Household Net Worth Near All-Time Highs

    The Effect of the COVID-19 Pandemic on Retirement Savings

     

    We reported on how the COVID-19 pandemic has affected working individuals in our Retirement Survey & Insights Report 2022.

     

    Women were more likely to report being negatively impacted by the pandemic, with 29% being forced to withdraw funds from their emergency savings. On the other hand, only 20% of men reported withdrawing from their emergency fund during the pandemic. Additionally, 19% of women respondents withdrew from their retirement savings during the pandemic compared to only 14% of men.

     

    Women respondents were also less likely to increase their retirement savings and emergency savings during the pandemic.

     

    Supporting family needs (home schooling and childcare) and in some cases, the cost of childcare, cause some women to exit the workforce. While both men (35%) and women (38%) report expecting to delay their retirement due to the pandemic, women are more likely to report longer delays (23% women, more than four years vs. 18% of men).

     

     

    Did any of the following happen to you during the Covid-19 pandemic?

     
    Household Net Worth Near All-Time Highs

     

     

    How, if at all, did COVID-19 affect your expected retirement timeline?

     
    Household Net Worth Near All-Time Highs

    Women Are More Likely to Retire Early and for Reasons Outside Their Control

     

    Retiring earlier than planned is an important reality many face in retirement. For women respondents, 61% retired earlier than planned vs. 50% of men, which means that only about two in five women respondents retired when they planned.

     

    Additionally, there are notable differences in the reported reasons men and women retired. Health reasons was the top factor for women (29%) and tired of working was the top factor for men (29%). However, men were also more likely to report reaching Social Security age and that their savings were sufficient to fund retirement than women. Women were more likely to report taking care of a family member and retiring because a spouse or friend retired.

     

    Overall, 66% of women retired for reasons outside of their control.

     

     

    Did you retire earlier, right around, or later than planned?

     
    Household Net Worth Near All-Time Highs

     

     

    Which of the following are reasons that you retired? (*Reasons considered outside the individual’s control)

     
    Household Net Worth Near All-Time Highs

    Market Volatility Leads to Lower Spending and Lower Savings

     

    Market volatility can be difficult to navigate and can shake confidence in one’s saving strategy.

     

    Women were more likely (27% vs. 19% for men) to report a decrease in their retirement savings relative to last year. Conversely, men were more likely to report an increase in savings relative to last year (43% vs. 29% for women). Broadly speaking, decreasing spending was reported as the top action being taken during the current market volatility. Additionally, 45% of women and 37% of men report decreasing spending.

     

    Secondarily, 24% of women reported withdrawing from emergency savings (vs. 17% of men) and 31% of men reported moving to a more conservative asset allocation (vs. 21% of women).

     

     

    Compared to the last year, has your annual retirement savings...

     
    Household Net Worth Near All-Time Highs

     

     

    During this recent market volatility, what actions did you take?

     
    Household Net Worth Near All-Time Highs

    Eight of Ten Retired Women May Not Have Enough Savings for Retirement

     

    It is commonly suggested that 70% pre-retirement income is needed to maintain one’s standard of living in retirement. However, 80% of retired women respondents receive less than the 70% target (compared with 70% for men). Even more notable, 58% of women respondents generate less than 50% of their pre-retirement income in retirement (vs. 44% of men) and only 20% generate more than 70% (vs. 30% of men).

     

    Plan sponsors may be able to support their plan participants by providing resources that offer personalized insight into their savings trajectory with recommendations on how to adjustment the strategy to help keep overall savings on track.

     

     

    How much total annual income do you receive in retirement (including Social Security) relative to your pre-retirement income? (e.g., your final annual compensation prior to retirement, such as salary, bonus, etc.)

     
    Household Net Worth Near All-Time Highs

    Many Women (and Men) Underestimate Their Retirement Income Needs

     

    As mentioned, many experts suggest that retirement savers should expect they will need at least 70% of pre-retirement income. However, we see that only 33% of working women (vs. 26% of men) reported anticipating needing at least that amount. Women may also need to treat this needed income level conservatively given the general expectation that they will live longer in retirement.

     

    The desired levels of guaranteed income are roughly consistent between the genders. Notably, there is a wide range of desired guaranteed income levels for both men and women, with the bulk of interest in having between 40% and 80% of their income coming from guaranteed sources.

     

     

     

    How much total annual income do you anticipate needing entering retirement (including Social Security) relative to your pre-retirement income? (e.g., your final annual compensation prior to retirement, such as salary, bonus, etc.)

     
    Household Net Worth Near All-Time Highs

     

     

    What percentage of retirement income do you want to receive from guaranteed sources (pension, Social Security or annuities)?

     
    Household Net Worth Near All-Time Highs

    Leaving a Steady Paycheck is a Greater Concern for Women

     

    While having sufficient savings, healthcare needs, and inflation concerns were similar for both women and men, there was a meaningful difference in concern with leaving a steady paycheck. Many working and retired respondents expressed concern over not being able to generate income from a job when they transition to retirement, but women reported this concern more so than men.

     

     

    What concerns, if any, do you have about preparing for retirement?

     
    Household Net Worth Near All-Time Highs

    Top Challenges Women Face are Fundamental Retirement Planning Needs

     

    The top challenges women reported preparing for retirement were concentrated on four primary retirement saving needs as shown in the chart. While men reported their top challenges ranged across a diverse number of topics, (e.g., managing taxes, managing through market volatility), women respondents focused on key issues needed to successfully retire.

     

    This chart demonstrates the different challenges faced by different plan demographics and the benefit of providing advice and guidance across a range of topics to help plan participants successfully prepare for retirement.

     

     

    What are the top challenges you face managing your retirement savings and investments where you would like advice / guidance? (Select up to three choices).

     
    Household Net Worth Near All-Time Highs

    Despite Concerns and Confidence in Their Ability, Women are More Likely to Manage Savings Themselves

     

    Given women reported facing many challenges managing their retirement savings, it may seem that women leverage financial help to navigate these challenges to a greater degree. 

     

    However, 69% of women respondents reported managing their savings themselves, while men were more likely to work with a financial advisor. Nearly all (95%) of survey respondents indicated they view financial help as important, but women were more likely to report that financial help is extremely or very important to successfully manage their retirement savings (46% for women, vs. 40% for men).

     

     

    Do you manage your retirement savings yourself?

    Household Net Worth Near All-Time Highs

     

     

    How important is it to receive financial help (education, advice, counseling) to successfully manage your retirement savings/income and investments?
    Household Net Worth Near All-Time Highs

    Top Sources of Help & Advice for Workers

     

    When it comes to the notion of financial help, women and men respondents have varying opinions on what channels of education and advice are preferred. Men reported preferring to work with a financial advisor as their top choice of education and advice, while women respondents more often relied on their family members.  Additionally, more women reported not using any resources to plan for retirement (15% of women, vs. 9% of men). Despite the added complexity in managing their retirement savings, women were less likely to leverage financial resources to do so.

     

     

    Which of the following sources of education and advice do you currently leverage to learn about developing a plan for retirement? (Select up to three choices).

     
    Household Net Worth Near All-Time Highs
    download

    Save a copy as a PDF

    Navigating the Financial Vortex: Women & Retirement Security

     

     

     

     

    Related Insights
    ×

    Start the Conversation

    Committed to providing you with the insights you need to build your practice.

     
    Lets Talk

     

    All investing involves risk, including loss of principal.

    Views expressed discussed are those of survey respondents, compiled by Goldman Sachs Asset Management as of August 31, 2022.

    This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

    THESE MATERIALS ARE PROVIDED SOLELY ON THE BASIS THAT THEY WILL NOT CONSTITUTE INVESTMENT ADVICE AND WILL NOT FORM A PRIMARY BASIS FOR ANY PERSON’S OR PLAN’S INVESTMENT DECISIONS, AND GOLDMAN SACHS IS NOT A FIDUCIARY WITH RESPECT TO ANY PERSON OR PLAN BY REASON OF PROVIDING THE MATERIAL OR CONTENT HEREIN. PLAN FIDUCIARIES SHOULD CONSIDER THEIR OWN CIRCUMSTANCES IN ASSESSING ANY POTENTIAL INVESTMENT COURSE OF ACTION.

    Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice.

    THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.

    Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources.

    Asia excluding Japan: Please note that neither Goldman Sachs Asset Management (Hong Kong) Limited (“GSAMHK”) or Goldman Sachs Asset Management (Singapore) Pte. Ltd. (Company Number: 201329851H ) (“GSAMS”) nor any other entities involved in the Goldman Sachs Asset Management business that provide this material and information maintain any licenses, authorizations or registrations in Asia (other than Japan), except that it conducts businesses (subject to applicable local regulations) in and from the following jurisdictions: Hong Kong, Singapore, Malaysia, India and China. This material has been issued for use in or from Hong Kong by Goldman Sachs Asset Management (Hong Kong) Limited, in or from Singapore by Goldman Sachs Asset Management (Singapore) Pte. Ltd. (Company Number: 201329851H) and in or from Malaysia by Goldman Sachs (Malaysia) Sdn Berhad (880767W).

    Australia and New Zealand: This material is distributed in Australia and New Zealand by Goldman Sachs Asset Management Australia Pty Ltd ABN 41 006 099 681, AFSL 228948 (’GSAMA’) and is intended for viewing only by wholesale clients in Australia for the purposes of section 761G of the Corporations Act 2001 (Cth) and to clients who either fall within any or all of the categories of investors set out in section 3(2) or sub-section 5(2CC) of the Securities Act 1978, fall within the definition of a wholesale client for the purposes of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSPA) and the Financial Advisers Act 2008 (FAA),and fall within the definition of a wholesale investor under one of clause 37, clause 38, clause 39 or clause 40 of Schedule 1 of the Financial Markets Conduct Act 2013 (FMCA) of New Zealand (collectively, a “NZ Wholesale Investor”).

    GSAMA is not a registered financial service provider under the FSPA. GSAMA does not have a place of business in New Zealand. In New Zealand, this document, and any access to it, is intended only for a person who has first satisfied GSAMA that the person is a NZ Wholesale Investor. This document is intended for viewing only by the intended recipient. This document may not be reproduced or distributed to any person in whole or in part without the prior written consent of GSAMA.

    To the extent that this document contains any statement which may be considered to be financial product advice in Australia under the Corporations Act 2001 (Cth), that advice is intended to be given to the intended recipient of this document only, being a wholesale client for the purposes of the Corporations Act 2001 (Cth).

    Any advice provided in this document is provided by either of the following entities. They are exempt from the requirement to hold an Australian financial services licence under the Corporations Act of Australia and therefore do not hold any Australian Financial Services Licences, and are regulated under their respective laws applicable to their jurisdictions, which differ from Australian laws. Any financial services given to any person by these entities by distributing this document in Australia are provided to such persons pursuant to the respective ASIC Class Orders and ASIC Instrument mentioned below.

    • Goldman Sachs Asset Management, LP (GSAMLP), Goldman Sachs & Co. LLC (GSCo), pursuant ASIC Class Order 03/1100; regulated by the US Securities and Exchange Commission under US laws.

    • Goldman Sachs Asset Management International (GSAMI), Goldman Sachs International (GSI), pursuant to ASIC Class Order 03/1099; regulated by the Financial Conduct Authority; GSI is also authorized by the Prudential Regulation Authority, and both entities are under UK laws.

    • Goldman Sachs Asset Management (Singapore) Pte. Ltd. (GSAMS), pursuant to ASIC Class Order 03/1102; regulated by the Monetary Authority of Singapore under Singaporean laws

    • Goldman Sachs Asset Management (Hong Kong) Limited (GSAMHK), pursuant to ASIC Class Order 03/1103 and Goldman Sachs (Asia) LLC (GSALLC), pursuant to ASIC Instrument 04/0250; regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws

    No offer to acquire any interest in a fund or a financial product is being made to you in this document. If the interests or financial products do become available in the future, the offer may be arranged by GSAMA in accordance with section 911A(2)(b) of the Corporations Act. GSAMA holds Australian Financial Services Licence No. 228948. Any offer will only be made in circumstances where disclosure is not required under Part 6D.2 of the Corporations Act or a product disclosure statement is not required to be given under Part 7.9 of the Corporations Act (as relevant).

    Bahrain: This material has not been reviewed by the Central Bank of Bahrain (CBB) and the CBB takes no responsibility for the accuracy of the statements or the information contained herein, or for the performance of the securities or related investment, nor shall the CBB have any liability to any person for damage or loss resulting from reliance on any statement or information contained herein. This material will not be issued, passed to, or made available to the public generally.

    Canada: This presentation has been communicated in Canada by GSAM LP, which is registered as a portfolio manager under securities legislation in all provinces of Canada and as a commodity trading manager under the commodity futures legislation of Ontario and as a derivatives adviser under the derivatives legislation of Quebec. GSAM LP is not registered to provide investment advisory or portfolio management services in respect of exchange-traded futures or options contracts in Manitoba and is not offering to provide such investment advisory or portfolio management services in Manitoba by delivery of this material.

    Cambodia: The attached information has been provided at your request for informational purposes only and is not intended as a solicitation in respect of the purchase or sale of instruments or securities (including funds) or the provision of services. Neither Goldman Sachs Asset Management (Singapore) Pte. Ltd. nor any of its affiliates is licensed as a dealer or investment advisor under The Securities and Exchange Commission of Cambodia. The information has been provided to you solely for your own purposes and must not be copied or redistributed to any person without the prior consent of Goldman Sachs Asset Management.

    East-Timor: The attached information has been provided at your request for informational purposes only and is not intended as a solicitation in respect of the purchase or sale of instruments or securities (including funds), or the provision of services. Neither Goldman Sachs Asset Management (Singapore) Pte. Ltd. nor any of its affiliates is licensed under any laws or regulations of Timor-Leste. The information has been provided to you solely for your own purposes and must not be copied or redistributed to any person or institution without the prior consent of Goldman Sachs Asset Management.

    European Economic Area (EEA): This material is a financial promotion disseminated by Goldman Sachs Bank Europe SE, including through its authorised branches ("GSBE"). GSBE is a credit institution incorporated in Germany and, within the Single Supervisory Mechanism established between those Member States of the European Union whose official currency is the Euro, subject to direct prudential supervision by the European Central Bank and in other respects supervised by German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufischt, BaFin) and Deutsche Bundesbank.

    Israel: This document has not been, and will not be, registered with or reviewed or approved by the Israel Securities Authority (ISA”). It is not for general circulation in Israel and may not be reproduced or used for any other purpose. Goldman Sachs Asset Management International is not licensed to provide investment advisory or management services in Israel.

    Japan: This material has been issued or approved in Japan for the use of professional investors defined in Article 2 paragraph (31) of the Financial Instruments and Exchange Law by Goldman Sachs Asset Management Co., Ltd.

    Jordan: The document has not been presented to, or approved by, the Jordanian Securities Commission or the Board for Regulating Transactions in Foreign Exchanges.

    Kuwait: This material has not been approved for distribution in the State of Kuwait by the Ministry of Commerce and Industry or the Central Bank of Kuwait or any other relevant Kuwaiti government agency. The distribution of this material is, therefore, restricted in accordance with law no. 31 of 1990 and law no. 7 of 2010, as amended. No private or public offering of securities is being made in the State of Kuwait, and no agreement relating to the sale of any securities will be concluded in the State of Kuwait. No marketing, solicitation or inducement activities are being used to offer or market securities in the State of Kuwait.

    Oman: The Capital Market Authority of the Sultanate of Oman (the "CMA") is not liable for the correctness or adequacy of information provided in this document or for identifying whether or not the services contemplated within this document are appropriate investment for a potential investor. The CMA shall also not be liable for any damage or loss resulting from reliance placed on the document.

    Qatar: This document has not been, and will not be, registered with or reviewed or approved by the Qatar Financial Markets Authority, the Qatar Financial Centre Regulatory Authority or Qatar Central Bank and may not be publicly distributed. It is not for general circulation in the State of Qatar and may not be reproduced or used for any other purpose.

    Saudi Arabia: The Capital Market Authority does not make any representation as to the accuracy or completeness of this document, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. If you do not understand the contents of this document you should consult an authorised financial adviser.

    South Africa: Goldman Sachs Asset Management International is authorised by the Financial Services Board of South Africa as a financial services provider.

    Switzerland: For Qualified Investor use only – Not for distribution to general public. This is marketing material. This document is provided to you by Goldman Sachs Bank AG, Zürich. Any future contractual relationships will be entered into with affiliates of Goldman Sachs Bank AG, which are domiciled outside of Switzerland. We would like to remind you that foreign (Non-Swiss) legal and regulatory systems may not provide the same level of protection in relation to client confidentiality and data protection as offered to you by Swiss law.

    UAE: This document has not been approved by or filed with the Central Bank of the United Arab Emirates or the Securities and Commodities Authority. If you do not understand the contents of this document, you should consult with a financial advisor.

    United Kingdom: In the United Kingdom, this material is a financial promotion and has been approved by Goldman Sachs Asset Management International, which is authorized and regulated in the United Kingdom by the Financial Conduct Authority.

    Vietnam: The attached information has been provided at your request for informational purposes only. The attached materials are not, and any authors who contribute to these materials are not, providing advice to any person. The attached materials are not and should not be construed as an offering of any securities or any services to any person. Neither Goldman Sachs Asset Management (Singapore) Pte. Ltd. nor any of its affiliates is licensed as a dealer under the laws of Vietnam. The information has been provided to you solely for your own purposes and must not be copied or redistributed to any person without the prior consent of Goldman Sachs Asset Management.

    Confidentiality

    No part of this material may, without Goldman Sachs Asset Management’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.

    Date of First Use: December 7, 2022. 299045-OTU-1705355

    © 2025 Goldman Sachs. All rights reserved.