“I’m Not Old Enough!” Why Older Single Women Are Not Engaging in Retirement Planning Services

Abstract

Retirement is often perceived to be an important life stage or event that requires significant planning and preparation. Demographic shifts in the retirement population across the globe have driven the need for proactive planning and financial preparedness for retirement. As the composition of consumers in this traditionally aging, male-oriented product category alters, an increased understanding of female behavior towards consumption of retirement planning products and services is critical. With marital status as one of the most significant predictors (Glass Jnr and Kilpatrick 1998) of retirement wealth, planning for retirement income outside a married or partnered context is a determinant of wealth differences between single and married women (Butrica and Iams 2003). As a consequence, this research focuses on this cohort of single women who are at a significantly higher risk of a reduced standard of living post-retirement to illuminate the concepts under study. With the women of the baby boomer generation, born between 1945 and 1964, the largest cohort of women to reach retirement age in history (Lusardi and Mitchell 2007), they present a good unit of analysis to study the retirement preparedness by single women. Building on a very small body of research, this study provides exploratory insights into how older single women plan and prepare for retirement. Through examining the psychological drivers and barriers to accessing retirement planning services this study identifies factors critical to the development, delivery, and management of products within the financial services industry.