to Save More for Retirement Research by Drew M Anderson and J Michael Collins University of WisconsinMadison Judy Dougherty Prudential Financial Head of Strategic Initiatives Women are ID: 633836
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Discussion on: Can Knowledge Empower Women to Save More for Retirement?Research by Drew M. Anderson and J. Michael Collins,University of Wisconsin-Madison
Judy Dougherty
Prudential Financial
Head of Strategic Initiatives Slide2
Women are:
Living longerMore likely to be single later in lifeTime-starvedNot making retirement planning a priorityCarrying more debtEarning lessThe Retirement Income Gender Gap is Real
Job Earnings Gap
Social Security Gap
Retirement Savings Gap
Retirement Income GapSlide3
Education May Help Overcome Behavioral Challenges
Trouble imagining a long lifeProcrastinationBeing overly optimisticFollowing the packInstant gratification“I might live how long?”“I’ll do it later.”
“I just can’t resist”
“It won’t happen to me”
“I want it now!”Slide4
Robust research design: large sample size, accuracy of data, several control groups
Key features testedWorkplace financial education (e.g., multi-media, constant drip)Peer-to-peer conversation (engagement is key)Encouraging results Effective, especially at getting women to participateWorkplace is conducive for educationLow cost way to improve outcomes Potential refinements to the researchExtend to private sector (fewer pensions, less job stability)Drill down into segments of women (for targeting purposes)Explore the impact of education on contribution levelsExplore how other household finances may be affected (suggested by the researchers)Further explore the impact of peer-to-peer conversations EMPOWER Experiment: Role of Workplace Financial Education ProgramsSlide5
Manage day-to-day finances
Achieve important financial goalsProtect against key financial risksHow Employers Can Help Employees Achieve Secure Retirements
DC Plan Design
Financial Wellness Programs
Tools and Calculators
Data Analytics
Automatic enrollment and escalation
Target date funds as default investment
Efficient structuring of matching contributions
Guaranteed lifetime income
Understand needs of employee base
Targeted communications to segments
Optimize budget for employee benefits
Retirement calculators
Planning and budgeting tools
Online educationSlide6
Reduced financial stress
More control over retirement ageMore financial freedomSecure Retirements are a Win-Win for Employees and Employers Alike
Increased productivity
Increased ability to retain and recruit talent
Better workforce management and cost savings
Employees
EmployersSlide7
The retirement income gender gap is real
Financial education can help reduce the gap, as indicated in the EMPOWER researchEducation is a relatively low-cost way to improve retirement outcomesResults are encouraging, especially in getting employees to participate Potential refinements to the research should be considered (e.g., extend to private sector)However, more needs to be done. Employers can help in two fundamental waysProvide appropriate DC plan defaults for employeesAdopt a holistic financial wellness program which includes educating employees to help them make the right financial decisionsSecure retirements are good for allConclusion
For more information, visit research.prudential.com
The Prudential Insurance Company of America Newark, NJ
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