Half of women report feeling worried about having enough money to last through retirement, according to a new survey from Fidelity Investments of 1,542 women with retirement plans.
Those anxieties aren't necessarily misplaced either.
Women have longer projected lifespans than men and even if married, are likely to spend at least a portion of their older years alone due to widowhood.
“So they need larger pots of money to ensure they won’t outlive their savings,” says Kathy Murphy, president of personal investing at Fidelity.
Earlier research by the company found that while women save more on average for retirement (socking away an average 8.3% of their salary in 401(k)s vs. 7.9% for men) they typically earn two-thirds of what men do and thus have smaller retirement account balances ($63,700 versus $95,800 for men).
Also, while women are more disciplined long term investors who are less likely than men to time the market, women are also more reluctant to take risk with their portfolios, says Murphy.
“And if you invest too conservatively for your age and your time horizon, that money isn’t working hard enough for you,” she adds.
How Women Can Increase their Confidence
Financial education can help women reduce the confidence gap, and get to the finish line better prepared, says Murphy.
According to the Fidelity survey, some 92% of women say they want to learn more about financial planning. And there's a lot you can do for free to educate yourself, notes Murphy. As an example, she notes that many employers now offer investing webinars and workshops for 401(k) participants.
You might also start by reading Money's Ultimate Guide to Retirement for the least you need to know about retirement planning, in digestible chunks of plain English. In particular, you might check out the piece on figuring out the right mix of stocks and bonds, to help you determine if you're being too risk averse.
Also, simply calculating how much you need to save for the retirement you want—using tools like T. Rowe Price's Retirement Income Planner—can help you make plans and feel more secure.
The 10-minute exercise can have a powerful payoff: The Employee Benefit Research Institute regularly finds in its annual Retirement Confidence Index that people who even do a quick estimate have a much better handle on how much they need to save and are more confident about their money situation. Also, according to research by Georgetown University econ professor Annamaria Lusardi, who is also academic director of the university’s Global Financial Literacy Excellence Center, people who plan for retirement end up with three times the amount of wealth as non-planners.
Says Murphy, “We need to let women in on the secret that investing isn’t that hard."
More from Money.com's Ultimate Guide to Retirement: