2023 Retirement Income Literacy Study: Women’s View
Women struggle with retirement knowledge and outcomes
Women’s Applied Knowledge Trails Men’s
The Retirement Income Literacy Study from The American College of Financial Services offers insight and analysis into older Americans’ financial literacy in 12 knowledge areas related to retirement income—including Social Security, longevity, investments, and more. In its fourth wave since the study began in 2014, the 2023 study reveals women aged 50 to 75 continue to have significantly less knowledge of retirement, less confidence, and lower financial well-being compared to their male counterparts. Yet there are glimmers of hope and signs more can be done to help.
As in the past, women perform statistically lower on retirement income literacy overall, with an average score of 29% compared to men’s average of 34%. This finding is consistent with what researchers observed in prior years—and unfortunately, the gap hasn’t narrowed since the study began nearly a decade ago.
This gender difference holds true regardless of:
Retirement status
- Retired women have higher scores than non-retired women (31% vs. 26%); but both of their male counterparts perform better (retired men 36%, non-retired men 31%).
Marital status
- Married women have higher scores (31%) than single, divorced, or widowed women (27%), but lower scores than their male counterparts (married 37%, single, divorced, or widowed 29%).
Race and ethnicity
- Of the three largest groups surveyed, white women have the highest scores (30%), followed by Hispanic women (23%), and then Black women (21%); men representing the same groups perform higher (white men 35%, Hispanic men 30%, and Black men 28%).
Women’s Knowledge is More Experiential
It’s clear by generally low scores that most older Americans have serious knowledge gaps when it comes to retirement topics. Women score lower than men in most areas that make up overall retirement income literacy—and far lower on investment knowledge especially (women’s 16% vs. men’s 29%).
However, there are a few noteworthy exceptions that suggest women’s knowledge is stronger when they have direct experience:
- Living expenses—While falling short of their male peers in most areas, women score statistically the same as men on two topics: housing (around 46%) and Medicare (around 42%). Researchers believe these are two areas in which the study group of 50- to 75-year-olds would have the most direct experience and understanding as they relate to daily life.
- Long-term care—Although both genders struggle with the topic of long-term care, it proves to be the one area in which women score higher than men (women’s 25% vs. men’s 22%). Questions in this area are less technical than other areas and primarily focus on expectations—implying women have a natural knowledge of care needs they can anticipate later in life, perhaps due to direct experience serving as caregivers for their family members.
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