Ohio Department of Aging
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September 2007
Mothers, Daughters Have Different Attitudes About Retirement
There are more women in the workforce now than at any other time in history, and women are earning higher wages than ever, yet women still tend to earn less than men, are more likely to work part-time or leave the workforce temporarily for caregiving responsibilities, and live longer than men. These factors can have a dramatic impact on women’s retirement security.
A new Metlife Mature Market study, "It's Not Your Mother's Retirement: The MetLife Study of Women and Generational Difference," interviewed retired women and their working-age daughters on their perceptions and expectations of retirement and found some significant differences in attitudes.
Daughters will work longer. Three-quarters of mothers retired before the traditional retirement age of 65, yet only 37 percent of their daughters predict they will retire before then. Seventeen percent of daughters say they will be 70 or older and 6 percent say they may never retire. Married women in both groups are more likely to retire early than unmarried women.
Daughters believe their retirement will be better and more interesting than their mothers'. Two thirds of mothers (65 percent) believe the quality of their retirement has been excellent or very good, while only 46 percent of daughters say that about their mothers. More than half of daughters (56 percent) believe their own retirement will be better than their mothers' and four in ten mothers (41 percent) agree. Mothers and daughters agree that daughters are more likely to spend their retirement time on active pursuits and less time relaxing and "doing nothing."
Daughters are more likely to face financial adjustments. More than a third (34 percent) of daughters say their biggest financial adjustment at retirement will be living on a reduced income or budget, a concern shared by 28 percent of mothers. More than a quarter (29 percent) of mothers say they did not have to make any financial adjustment when they retired.
Daughters expect different sources of retirement income. Nearly nine in ten mothers (90 percent) - but just three in four daughters (75 percent) - report Social Security as a current or future source of retirement income. By contrast, 77 percent of daughters, compared with 46 percent of mothers, indicate their retirement will be funded by an employer-sponsored retirement plan.
Home equity may save daughters. Forty-six percent of daughters and 45 percent of mothers will use their home as a source of retirement income, either through selling or tapping into equity. Among those who expect to use their homes as a source of income, daughters (61 percent) are more likely than mothers (43 percent) to say they will move to a less expensive home.
Husbands and wives play equal financial roles. Nearly half of married women say they share responsibility for retirement planning or managing finances. Mothers believe their married daughters take more responsibility than they did for retirement planning.
Mothers and daughters may not be communicating on retirement. Half of mothers (51 percent) say they spend some or a great deal of time discussing retirement and retirement planning with their daughters. Unfortunately, daughters may not be listening - fewer than one third of daughters report having those conversations with their mothers (32 percent). Likewise, daughters say they speak with their mothers more often than mothers report speaking with their daughters.
Ohio Department of Aging