A recent study conducted by the Momentum Group has uncovered a concerning trend: a staggering 92% of women lack confidence when it comes to their retirement plans. The research highlights that discussions about retirement often begin too late—typically just five years before leaving the workforce—leaving little time for effective financial adjustments.
Women Rely on Informal Financial Advice
The study also found that approximately 80% of women depend on informal platforms for financial guidance rather than seeking professional advice. Momentum Group warns against this practice, emphasizing that expert financial planning is crucial for making informed decisions.
“Financial advice is available to both men and women, but disproportionately, men are the ones accessing it,” the group stated. They urge women to take a more proactive role in understanding their retirement options to secure their financial futures.
The Need for Early Planning
One of the key issues identified is the delayed conversation around retirement. Many women only start planning when they are near retirement age, limiting their ability to make necessary financial adjustments.
“By the time you’re five or ten years away from retirement, you don’t have enough working years left to make meaningful changes,” the report noted. “Many only begin understanding how retirement funds work at this stage, which is far too late.”
Employers Encouraged to Step In
Momentum Group called on employers to play a more active role by encouraging female employees to attend retirement benefit counseling sessions. These sessions, which are a legislated benefit for all fund members, provide clarity on retirement savings, options, and connections to financial advisors.
“Most of our financial discussions happen with our employers, yet many women are never asked if they’ve had a retirement counseling discussion,” the group pointed out. “Simple encouragement to engage with these resources can make a huge difference.”
Women Face Greater Financial Burdens
The study also highlighted that women often carry heavier financial responsibilities than men, including caring for dependents. This makes retirement planning even more critical, as their savings may need to support not just themselves but others as well.
“Women need to arm themselves financially,” Momentum stressed. “In many cases, their retirement savings must cover more than just their own needs.”
A Call to Action
With only 8% of women feeling confident about their retirement, Momentum’s findings underscore an urgent need for earlier, more structured financial planning. The group’s recommendations include:
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Seeking professional financial advice instead of informal sources.
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Starting retirement discussions decades before retirement age.
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Employers actively promoting retirement benefit counseling.
As the retirement savings gap continues to affect women disproportionately, experts stress that proactive planning and employer support could be key to closing the confidence gap—and ensuring a more secure financial future.