focus on gender retirement savings and spending 4 ......2019/06/25 · by baby boomer generation...

Focus on GenderRETIREMENT SAVINGS AND SPENDING 4:FINANCIAL BEHAVIOR & ATTITUDES

T. Rowe PriceJune 25, 2019

2

Contents Methodology

Workers: Gender Profile

Workers: Financial Behaviors & Attitudes by Gender

Retirees: Gender Profile

Retirees: Retirement Experience by Gender

3

Methodology Representative national study of 3,005 adults 21+ never retired, currently contributing to a 401(k) plan or

eligible to contribute and have a balance of $1,000+

Along with 1,005 adults who have retired with a Rollover IRA or left-in-plan 401(k) balance

Conducted online July 24 through August 14, 2018

Worker design included oversamples which were then weighted back to naturally occurring proportions

Due to the small sample size of Generation X respondents, generational comparisons are limited to millennial and baby boomer workers

WorkersActual N =

Actual Proportion

WeightedProportion

Millennial (21-37) 1,251 42% 36%

Gen X (38 -53) 503 17% 39%

Baby Boomer (54 or older) 1,251 42% 26%

Total 3,005 100% 100%

RSS4 © 2018 NMG Consulting. All rights reservedConducted for T. Rowe Price by NMG Consulting

WORKERS: GENDER PROFILE

5

Workers2018 2017 2015

N= 3005 3,022 3,026Male 61% 63% 60%Female 39% 37% 40%

Average age 44 43 42

Work status:Working full time 92% 92% 91%Working part time 8% 8% 9%

Married/Partnered 72% 70% 68%

ProfileBy total workers

As of 2018. Base: total interviews.

6

Workers2018 2017 2015

N= 3005 3,022 3,026Have children < 18 in HH 43% 45% 41%Have adult children 50% 47% 41%Have a living parent 74% 73% 82%

Education:High school or less 25% 26% 25%Some post secondary 29% 29% 30%College degree or more 46% 45% 45%

Personal income (average $ in thousands) $91 $83 $82Personal income (median $ in thousands) $77 $69 $70

Household income (average $ in thousands) $159 $142 $127Household income (median $ in thousands) $125 $125 $113

ProfileBy total workers


7

$79,000 $77,400

$89,400

$57,500 $55,300

$62,400

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2015 2017 2018

Men Women

By total workers

Median Annual Income

8

$86,200 $82,700

$102,800

$53,600 $51,300

$61,200

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2015 2017 2018

Men Women

By baby boomer generation


9

$63,300 $63,900

$84,900

$47,900

$55,000 $56,100

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2015 2017 2018

Men Women

By millennial generation


WORKERS: FINANCIAL BEHAVIORS AND ATTITUDES BY GENDER

11

$67,400

$82,300

$73,500

$33,800 $32,000

38,100

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2015 2017 2018

Men Women

By total workers

Median 401(k) Balance

12

$143,700 $136,900 $138,200

$50,400 $51,500 58,700

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2015 2017 2018

Men Women



13

$22,000

$44,800

$42,300

$10,600 $11,200 $12,300

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2015 2017 2018

Men Women



14

8%

10%

5%

7%

0%

2%

4%

6%

8%

10%

12%

Millennials Baby Boomers

Men Women

By worker generations

Median 401(k) Deferral Rates

15

By total workers

Financial Truths for Men

How often do you think the following statements are true for you and your household?

6%

17%

15%

23%

42%

27%

11%

19%

26%

25%

19%

37%

24%

26%

38%

35%

22%

25%

59%

38%

21%

17%

17%

11%

0% 20% 40% 60% 80% 100%

You have problems paying your monthly bills

You carry a balance on your credit card and pay interest

You use a fixed budget for your spending

You make after-tax savings after taking care of all your expenses

You pay your credit card balances in full when due

You are able to stick to your monthly budget if you have one

Always Often Sometimes Never

16

By total workers

Financial Truths for Women

How often do you think the following statements are true for you and your household?

8%

16%

22%

18%

34%

24%

10%

20%

20%

26%

17%

36%

27%

41%

24%

36%

25%

32%

55%

22%

34%

20%

24%

8%

0% 20% 40% 60% 80% 100%

You have problems paying your monthly bills

You make after-tax savings after taking care of all your expenses

You carry a balance on your credit card and pay interest

You use a fixed budget for your spending

You pay your credit card balances in full when due

You are able to stick to your monthly budget if you have one

Always Often Sometimes Never

17

Employment IndustryBy total workers

Which one of the following industries most nearly describes your work?

15%

15%

13%

12%

10%

8%

7%

7%

4%

4%

2%

2%

Trade, transportation or utilities

Professional or business services

Manufacturing

The financial industry

Health care and social assistance

Other services (except public administration)

The information industry

The construction industry

Educational services

Leisure and hospitality

Agriculture, natural resources or mining

Public administration

18

6%

2%3%

13%

7%5%

20%

2%

15%

20%

1%

5%

1%

4%3%

15%14%

5%

4%

11%

1%

15%

17%

1%

8%

0%0%

5%

10%

15%

20%

25%

Construction EducationalServices

Health Careand SocialAssistance

FinancialIndustry

InformationIndustry

Leisure andHospitality

Manufacturing Agriculture,Natural

Resources orMining

Professional orBusinessServices

Trade,Transportation

or Utilities

PublicAdministration

Other Services(except PublicAdministration)

Other

Men Women


Employment IndustryWhich one of the following industries most nearly describes your work?

19

10%

3%

5%

13%

10%

3%

10%

5%

15%

12%

3%

8%

1%

5% 5%

17%

13%

4%

7% 6%

2%

14%14%

1%

11%

0%0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Construction EducationalServices

Health Careand SocialAssistance

FinancialIndustry

InformationIndustry

Leisure andHospitality

Manufacturing Agriculture,Natural

Resources orMining

Professional orBusinessServices

Trade,Transportation

or Utilities

PublicAdministration

Other Services(except PublicAdministration)

Other

Men Women


Employment IndustryWhich one of the following industries most nearly describes your work?

20

WorkersValue of

outstanding debt

Have this debt Average $

Total debt $95Credit card 75% $19Car loan 54% $19Student loan 31% $15Medical debt 28% $11Other debt 23% $13Home equity loans (not counting primary mortgage) 22% $17

Household DebtBy total workers

Please indicate which of the following types of debt are held by you or others in your household.Please indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt)

21

62%

4%

34%

9%

17% 15%

63%

6%

36%

14%17%

13%

0%

10%

20%

30%

40%

50%

60%

70%

Credit Card Student Loan Car Loan Medical Debt Other Debt Home Equity Loans (notcounting primary mortgage)

Men Women


Please indicate which of the following types of debt are held by you or others in your household.

Household Debt

22

$2,192

$28,686

$15,400

$3,352 $4,535

$19,139

$3,071

$16,049

$13,182

$1,961 $1,921

$21,494

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000


Men Women


Household Debt--Median ValuesPlease indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt)

23

76%

32%

45%

24%

16%19%

74%

34%

50%

33%

23%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Men Women


Please indicate which of the following types of debt are held by you or others in your household.

Household Debt

24

$3,320

$17,515

$11,978

$3,959 $2,834

$20,901

$3,040

$15,609

$13,044

$3,082 $4,100

$20,157

$-

$5,000

$10,000

$15,000

$20,000

$25,000


Men Women

Please indicate the current outstanding amount of each type of debt held by you or your household member. (Base have this type of debt)

Household Debt–Median Values

25

As far as you know, what percentage of your income, including employer contributions, do financial experts typically recommend someone your age should contribute to your 401(k) to make sure you have a comfortable retirement?

13%

25% 24%

15%

10%

14%14%

25%

20%

11% 11%

20%

0%

5%

10%

15%

20%

25%

30%

1-4% 5-9% 10-14% 15-19% 20%+ Not Sure

Men Women

Financial Expert Recommendation By total workers

26

50%

22%

32%

18%15%

66%

31%

10%

18%16%

0%

10%

20%

30%

40%

50%

60%

70%

You're contributing all you canafford

You're paying back deby otherthan college loans

You're saving for retirementthrough outher vehicles

You're building up an emergencyfund

You're paying back college loans

Men Women

As you probably know, you (combined with your employer) are contributing less to your 401(k) than what financial experts typically recommend. Please indicate below the extent to which any of the items below are a reason for this.

Base: contributing less than what experts recommendReasons for Contributing Below Recommended By total workers

27

47%

43%

28%

32% 31%

28%

23%21% 21%

12%

17% 16% 15%

29%

15% 15%

4% 3%

50%

46%

35%

43%

32%29%

20% 20%18%

12%

16% 17%

22%

15%12% 12%

5% 4%

0%

10%

20%

30%

40%

50%

60%

Married Single Married Single Married Single Married Single Married Single Married Single Married Single Married Single Married Single

Credit Cards Family members orfriends

A specialemergency fund

account you haveestablished for

such needs

A specialenergency fund you

mentally earmarkfor such needs

Home equity loan Other bank loan Your after-taxpersonal savingsand investments

Your balances intax-deferredworkplace

retirement accounts

No source ofemergency cash

Men

Women

If you suddenly faced an emergency that required more cash than you had on hand, to which of the following sources of funds would you turn?

Sources of Funds for Emergency By total workers

28

28%

38%

48%

45%

21%

37%

51%

20%

24%

43%

30% 31%

46%

54%

0%

10%

20%

30%

40%

50%

60%

You will be able to helpyounger family members

with tuition or housingexpenses

You will be able to leavemoney to family members

or charities

You will have enoughmoney to pay for health

care

You will live as well orbetter as you did when you

were working

You will run out of money You will have to reduceyour standard of living

You will work at least part-time in retirement

Men Women

Given the retirement savings you have in place right now and the rate at which you may be adding to those savings, which of the statements below do you expect will be true for you in retirement? Please select all that apply.

Retirement Expectations

29

19%

41%

54%

34%

49%

14%

52%

14%

29%

45% 45%

34%

22%

56%

0%

10%

20%

30%

40%

50%

60%

You will be able to helpyounger family members

with tuition or housingexpenses

You will be able to leavemoney to family members

or charities

You will have enoughmoney to pay for health

care

You will have to reduceyour standard of living

You will live as well orbetter as you did when you

were working

You will run out of money You will work at least part-time in retirement

Men Women

Given the retirement savings you have in place right now and the rate at which you may be adding to those savings, which of the statements below do you expect will be true for you in retirement? Please select all that apply.

By baby boomer generationRetirement Expectations

30


Have Considered Delaying RetirementIn the past 12 months have you considered delaying your retirement beyond your original target age, or haven’t you?

42%

50%

0%

10%

20%

30%

40%

50%

60%

YES - Men YES - Women

31

By total workers

Top 5 Financial Advice Attributes for MenThinking about advice to help you achieve your lifetime financial goals, how important is having advice that does the following?

36%

37%

39%

40%

50%

41%

45%

41%

40%

37%

15%

11%

13%

13%

9%

8%

6%

7%

7%

4%

0% 20% 40% 60% 80% 100%

Motivates you to stay on track

Fits into your work or personal schedule

Is based on personalized recommendations tailored to yourfinancial situation

Alerts you to critical developments in your account

Is easy to use

Very important Somewhat important Not very important Not important at all

32

By total workers

Top 5 Financial Advice Attributes for Women

Thinking about advice to help you achieve your lifetime financial goals, how important is having advice that does the following?

42%

42%

44%

46%

63%

41%

40%

38%

39%

27%

11%

11%

12%

10%

6%

6%

7%

6%

6%

4%

0% 20% 40% 60% 80% 100%

Is based on personalized recommendations tailored to yourfinancial situation

Motivates you to stay on track

Alerts you to critical developments in your account

Fits into your work or personal schedule

Is easy to use

Very important Somewhat important Not very important Not important at all

RETIREES: GENDER PROFILE

34

RSS4 © 2018 NMG Consulting. All rights reservedConducted for T. Rowe Price by NMG Consulting

ProfileBy total retirees


Total retirees Male Female

N= 1004 466 538Male 49% 100% 0%Female 51% 0% 100%

Average age 72 72 73

Average years since retirement 11 11 11

Work status:Working full time 2% 3% 1%Working part time 8% 9% 7%Retired and not working or looking for work 85% 83% 87%

Married/partnered 64% 73% 56%

35

ProfileBy retiree gender


Total retirees Male Female

N= 1004 466 538Have children < 18 in HH 2% 1% 3%Have adult children 77% 76% 78%Have a living parent 17% 20% 13%

Education:High school or less 35% 25% 45%Some post secondary 23% 24% 22%College degree or more 41% 51% 32%

Personal income (average $ in thousands) $67 $79 $55 Personal income (median $ in thousands) $53 $67 $41

Household income (average $ in thousands) $110 $126 $95 Household income (median $ in thousands) $88 $100 $70

36

Percentage of Retired Men and Women (With Defined Contribution or IRA Assets) With Different Types of Assets, by Marital Status

Men Women

Single Married Single Married

401(k) or Roth 401(k) at current employer 36% 36% 32% 26%

Money in 401(k), 403(b), 457, profit sharing or other defined contribution accounts left in plan at former employers 31% 33% 32% 28%

Money held in a Traditional or Roth IRA 68% 72% 68% 69%

Money held in a checking, savings, or any other type of money market account 92% 96% 92% 91%

Money held in a taxable brokerage or investment account 58% 68% 53% 50%

By total retirees

Percentage of Asset Types

37

Medians of Different Types of Assets of Retired Men and Women with Defined Contribution or IRA Assets, by Marital Status

Men Women

Single Married Single Married

401(k) or Roth 401(k) at current employer $ - $ - $ - $ -

Money in 401(k), 403(b), 457, profit sharing or other defined contribution accounts left in plan at former employers $ - $ - $ - $ -

Money held in a traditional or Roth IRA $ 51,700 $ 45,400 $ 23,000 $ 26,700

Money held in a checking, savings, or any other type of money market account $ 23,800 $ 24,200 $ 16,200 $ 19,600

Money held in a taxable brokerage or investment account $ 3,600 $ 31,800 $ 800 $ 100

By total retirees

Median Value of Asset Types

38

71%

3%

13%

7% 6%

69%

1%

10%7%

14%

75%

1%

8%10%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Married Living with Partner Divorced/Separated Widow Never Married

Marital Status of Men by Years Since Retirement

5 years or less Between 5 years and 10 years 11 years or more

By total retirees

Marital Status of Men

39

56%

3%

19%

15%

7%

58%

4%

13%

20%

5%

50%

0%

10%

35%

5%

0%

10%

20%

30%

40%

50%

60%

70%

Married Living with Partner Divorced/Separated Widow Never Married

Marital Status of Women by Years Since Retirement

5 years or less Between 5 years and 10 years 11 years or more

By total retirees

Marital Status of Women

40

2%6%

1%3%

6%

83%

1%4%

0%4% 5%

87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Retired but now workingfull-time as an employee

Retired but now workingpart-time as an employee

Retired but now workingfull-time as a contractor

Retired but now workingpart-time as a contractor

Retired but now lookingfor work

Retired and not working orlooking for work

Men Women

By total retirees

Bearing in mind that some people retire and then go back to work, which one of the following phrases best describes your work situation?

Work Status

41

43%

17%

23%

47%

42%

31%

22%

55%

6%

40%

48% 48%

25% 26%

0%

10%

20%

30%

40%

50%

60%

I need the money This is what I alwayswanted to do but could

not do before

I need the socialengagement

I like the mentalstimulation providedby my current work

I like the sense ofmeaning and

fulfillment I receivefrom my work

I want to share myexpertise

I have nothing else todo with my time

Men Women

You mentioned that you are retired but working either part time of full time or looking for work. Can you please tell us why you are still working after retirement?

By total retirees

Work Status

RETIREES:RETIREMENT EXPERIENCE BY GENDER

43

38%

47%

5%

10%

6%8%

62%

24%

41%44%

4%

11%

39% 38%

7%

16%

7%

17%

56%

20%

36%

43%

3%

19%

0%

10%

20%

30%

40%

50%

60%

70%

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

So far, my retirement has turned out to be just asgood or better than I expected

My retirement has turned out to be worse than Iexpected

I am enjoying my retirement years more than myprimary working years

Retirement Experience by Gender for Those Retired for 5 Years or Less

Men

Women

How much do you agree or disagree with the following statements?

Retirement Experience

44

40%

53%

3% 4% 3% 4%

68%

25%

36%

47%

5%

12%

32%

46%

6%

16%

5%

21%

55%

19%

32%

44%

6%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat




Retirement Experience by Gender for Those Retired for More Than 5 Years but 10 Years or Less

Men

Women



45

50%

36%

5%8%

1%

6%

70%

23%

33%

47%

2%

18%

38%

45%

5%

12%

6% 8%

59%

26% 27%

51%

5%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat

AgreeCompletely

AgreeSomewhat

DisagreeCompletely

DisagreeSomewhat




Retirement Experience by Gender for Those Retired for 11 Years or More

Men

Women



focus on gender retirement savings and spending 4 ......2019/06/25 · by baby boomer generation...

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