Do Men and Women Differ in Their Retirement Planning? Testing a Theoretical Model of Gendered Pathways to Retirement Preparation

Abstract

Previous literature has situated retirement and retirement planning within the male’s domain by positioning women as unconcerned and therefore ill prepared for retirement. However, women’s increasing representation in the workforce requires a reexamination of their retirement plans and the factors that enable them. In this study, a subsample of 2,277 working men and women from the New Zealand Health, Work, and Retirement Survey provides the basis for a structural equation model examining the effects of socioeconomic status, work involvement, and retirement perceptions on retirement planning. This model also tests for gender differences to assess the extent to which women are disadvantaged in terms of their retirement planning and the factors that may affect retirement plans. Results indicated that perceptions of retirement and economic living standards were associated with financial preparedness. However, women were still economically disadvantaged compared to men and this impacted negatively on their financial preparations. Retirement and retirement planning is now of greater concern for women. Future promotional initiatives should be aimed at these groups to assist their financial preparations for the future.