Women are less hopeful they’ll be richer than their parents in retirement

New survey findings reveal gender-based and generational gaps in adults’ retirement wealth expectations.

Compared to men, women are less likely to believe that they’ll be richer than their parents upon reaching retirement.

That’s according to a new survey from CivicScience, which polled nearly 1,700 respondents in late May on their expected level of wealth on retirement relative to their parents.

The research published Friday found 40 percent of US adults believe they will surpass their parents’ wealth by the time they retire. This figure exceeds the roughly one-third of Americans who anticipate having less wealth at retirement.

The survey findings also suggest a link between current wealth status and people’s expectations. Higher earners, with an annual household income of $100,000 or more, generally foresaw an increase in their wealth, while those earning under $50,000 a year expect a decline.

Age also plays a crucial role. Gen Z adults just starting their careers exhibited the most uncertainty about their future wealth, while millennials were divided, with half believing they will be wealthier than their parents and half thinking otherwise. In contrast, Gen X is the most pessimistic about outpacing their parents’ wealth.

The gender gap in retirement wealth once again reared its head in the survey, with 42 percent of US women saying they do not expect to retire wealthier than their parents, compared to 31 percent of US men. Women in the poll were 13 points less likely than men to predict a wealthier future and more likely to believe they will have less wealth.

Amid a broad decline in savings and investment confidence this year, many Americans doubt they are saving enough to retire comfortably, with a significant portion expecting to work well into their retirement years. That sentiment is more pronounced among women, only 30 percent of whom felt at least ‘somewhat’ confident in their retirement savings, compared to 45 percent of men.

The pandemic has disproportionately affected various population segments, CivicScience said. While men’s wealth expectations have risen by five points since July 2022, women’s expectations have remained unchanged. Gen X expectations have declined, whereas adults under 45 are now seven points more likely to believe they will amass more wealth than their parents.

The survey also offered hints at how a person’s financial trajectory during the pandemic correlated with their future outlook.

More than half of those who expect to be wealthier than their parents report an improved financial situation since the pandemic began. Conversely, those who do not expect to surpass their parents’ wealth generally saw a decline in their financial status.