1. Can Knowledge Empower Women to Save More for Retirement?
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

2. The Retirement Income Gender Gap is Real
Women are:
Living longer
More likely to be single later in life
Time-starved
Not making retirement planning a priority
Carrying more debt
Earning less
Job Earnings Gap
Social Security Gap
Retirement Savings Gap
Retirement Income Gap

3. Education May Help Overcome Behavioral Challenges
“I might live how long?”
Trouble imagining a long life
Procrastination
Being overly optimistic
Following the pack
Instant gratification
“I’ll do it later.”
“It won’t happen to me”
“I just can’t resist”
“I want it now!”

4. EMPOWER Experiment: Role of Workplace Financial Education Programs
Robust research design: large sample size, accuracy of data, several control groups
Key features tested
Workplace financial education (e.g., multi-media, constant drip)
Peer-to-peer conversation (engagement is key)
Encouraging results
Effective, especially at getting women to participate
Workplace is conducive for education
Low cost way to improve outcomes
Potential refinements to the research
Extend to private sector (fewer pensions, less job stability)
Drill down into segments of women (for targeting purposes)
Explore the impact of education on contribution levels
Explore how other household finances may be affected (suggested by the researchers)
Further explore the impact of peer-to-peer conversations

5. How Employers Can Help Employees Achieve Secure Retirements
DC Plan Design
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
Financial Wellness Programs
Tools and Calculators
Manage day-to-day finances
Achieve important financial goals
Protect against key financial risks
Retirement calculators
Planning and budgeting tools
Online education

6. Secure Retirements are a Win-Win for Employees and Employers Alike
Reduced financial stress
More control over retirement age
More financial freedom
Increased productivity
Increased ability to retain and recruit talent
Better workforce management and cost savings

7. For more information, visit research.prudential.com
Conclusion
The retirement income gender gap is real
Financial education can help reduce the gap, as indicated in the EMPOWER research
Education is a relatively low-cost way to improve retirement outcomes
Results 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 ways
Provide appropriate DC plan defaults for employees
Adopt a holistic financial wellness program which includes educating employees to help them make the right financial decisions
Secure retirements are good for all
For more information, visit research.prudential.com
The Prudential Insurance Company of America Newark, NJ