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Women’s retirement savings lag men’s, raising prospect of retirement crisis: report

A potential retirement crisis is brewing among female retirees, with women saving roughly one-third as much as men, according to a survey released Monday by Prudential Financial.

A survey of 905 American adults between the ages of 55 and 75 found that men had saved an average of $157,000 for retirement, while women had only $50,000.

“The economic future of certain segments of the population, including women, is particularly precarious,” Caroline Feeney, CEO of Prudential’s U.S. operations, said in a statement.

“Women find it harder to save for retirement,” she added, pointing to inflation, house prices and changes in tax systems as major obstacles.

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Women face a potential retirement crisis, with a Prudential study finding that women’s retirement savings are just one-third of men’s, on average. (FOX Business/Photo Illustration/Fox News)

Compared to men surveyed, women were three times more likely to prioritize providing for their family and children over saving.

Nearly half of the men surveyed (46%) said they were looking forward to retirement and had further plans, compared with 27% of women.

“The good news is that with the right planning and strategies in place to protect their life’s work, this generation will be well-equipped to not only live longer, but live better,” Feeney said.

As the share of retirees in the U.S. declines, these states are seeing the biggest increases in older workers:

Piggy bank

The average American aged 55 has about $47,950 in savings, well below the amount recommended by Prudential. (iStock/iStock)

The survey also found that Americans age 55 are least financially prepared for retirement, with the average savings for this age group being just $47,950, well below the $446,565 recommended by Prudential and roughly eight times the average U.S. salary.

Two-thirds of 55-year-olds said they were afraid of running out of retirement savings, compared with 59% of 65-year-olds and 52% of 75-year-olds.

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401(k) tax return

The survey found that 401(k) accounts were more popular among 55-year-olds than their older peers who have more access to pensions. (Getty Images/Getty Images)

Nearly a quarter of 55-year-olds, 24%, said they expect to need financial support from family in retirement — double the 12% of 65- and 75-year-olds who expressed the same concern.

Nearly one in five 55-year-olds, or 21%, expect to need housing assistance, compared with 12% of 65-year-olds and 9% of 75-year-olds. Despite these concerns, 48% of 55-year-olds who expressed concerns have not yet discussed it with their families.

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Pensions are also less common among 55-year-olds than older people, and the survey found that 55-year-olds are nearly twice as likely as 65- and 75-year-olds to rely on a “do-it-yourself” employer-sponsored plan such as a 401(k) to fund their retirement.

Reuters contributed to this report.