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By Tina Beckwith, Chief Marketing Officer, LIMRA and LOMA

At this year’s recent LIMRA Annual Conference, I had the pleasure of sitting down with Jean Chatzky—award-winning financial journalist, founder of HerMoney and education fellow with the Alliance for Lifetime Income by LIMRA. We discussed how financial professionals can better support women and their retirement planning efforts.

When building a financially secure future, women often face unique challenges.

When it comes to retirement planning, women often encounter distinct hurdles. Women typically live longer, earn less over their lifetimes, and are more likely to take time out of the workforce for caregiving. According to LIMRA data on retirement investors*, women are less likely than men to feel confident about living the retirement lifestyle they want (67% versus 76% respectively).

“Women tend to have fewer retirement resources available, which could leave them vulnerable at some point in their retirement years,” says Chatzky. “Research from the Institute for Women’s Policy Research suggests that, on average, women have approximately 30% lower retirement incomes than men.”

When looking at retired and non-married men and women, LIMRA finds men are more likely to have retirement income from personal savings, traditional defined benefit plans and IRAs, among other sources.

Despite these challenges, women value retirement plans that prioritize protection.

Women are still deeply focused on securing their financial futures. They value retirement strategies that offer protection and peace of mind — but often do not have the guidance they need to make informed decisions.

This especially matters because women are expected to inherit $30 trillion in Baby Boomer wealth by 2030¹. As Chatzky points out, women will inherit twice: once from their parents, and again from their husbands (who statistically are more likely to die first).

This makes women a highly attractive market for lifetime guaranteed solutions. Nearly half of women aged 61–65 express interest in annuities — outpacing men by over 10 percentage points, according to the Alliance for Lifetime Income by LIMRA. Yet only 39% of women say they understand the role annuities play in a retirement plan, compared with 52% of men.

“Women don’t want to suffer lifestyle deflation; they want to be able to continue their lives, to help their children and grandchildren in their communities,” notes Chatzky. “All of those things are possible … but women need professionals and solutions to help them figure out the best decumulation strategies.”

What women look for in a financial professional:

Chatzky offers practical tips women can use to find the right financial professional.

• Start with referrals from friends and colleagues in similar financial situations.
• Look for experience and credentials, especially with advisors who understand your specific needs.
• Have a face-to-face conversation to gauge their listening skills and approach.
• Trust your gut — if something feels off, keep looking.

Similarly, legacy financial professionals who are already working with the husband should also look for ways to bring the wife into the conversation. Research shows women will leave an advisor relationship after the husband passes away. As Chatzky notes, it is because that relationship did not feel connected with the woman.

Financial professionals should take note that women are looking for advice they can act upon when it comes to building their financial futures. LIMRA research shows that 46% of women want a paid professional to manage their investments with minimal input or want suggestions from a financial professional and will go along with their recommendations most of the time.

National Retirement Security Month is about encouraging clients to start taking steps toward financial security. Given what we know about women’s beliefs, perspectives, and goals for financial security, financial professionals can help more female clients achieve a secure retirement.

For more information about women’s preferences and retirement concerns, listen to our full conversation on the Insider Insights Podcast: A Conversation with Jean Chatzky.

*Workers and retirees aged 40 to 85, with at least $100,000 in household investable assets.

¹2020 "Women as the next wave of growth in US wealth management," McKinsey & Co.