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Tag: online banking

  • Questrade secures approval to launch Canada’s newest bank – MoneySense

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    The company, however, won’t be rolling out new offerings immediately. Kholodenko said more details will be coming in the first half of next year on what’s in store, but that they haven’t ruled any categories out yet. “We’re working toward a full suite of services for Canadians.”

    Fintechs eye credibility through regulation

    The move comes as other fintech companies also push more into the banking space, including Wealthsimple Inc. which has been expanding its offerings into chequing accounts, credit cards, and mortgages as its assets under administration have grown to more than $100 billion.

    The best online brokers, ranked and compared

    Wealthsimple has grown through partnerships, including with established banks to provide deposit insurance, rather than securing its own licence, as chief executive Michael Katchen has said many times he doesn’t believe that Canada needs another bank. But Kholodenko said he thinks going the regulatory route will help overcome the reluctance some Canadians have to switching away from the Big Six banks that dominate the sector.

    “We firmly believe that Canadians need stability, and Canadians need to feel a sense of trust,” he said. “A banking licence gives us that capability to be able to show Canadians, hey, you know, this is a properly regulated entity, and you can trust us with your life savings.”

    Questrade expands its growing financial empire

    The banking licence adds to the broad suite of offerings Questrade already has, including a trust, a wealth business, an online brokerage business, as well as its robo-advisory business and consumer loans, that together count over $85 billion in assets under administration.

    “We already serve millions of Canadians,” Kholodenko said. “And we think that we can do much more for Canadians with a banking offering.”

    In April, Spanish bank Santander also secured a licence, but it has been quiet about any expansion plans. Koho Financial Inc. is also working toward securing a bank licence.

    Questrade’s banking license comes some 26 years after Kholodenko launched the company.

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  • Wealthsimple reveals that it’s now profitable, after 10 years in operation – MoneySense

    Wealthsimple reveals that it’s now profitable, after 10 years in operation – MoneySense

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    It also ditched U.S. expansion efforts after selling its U.S. book of business to Betterment in 2021, and sold its Wealthsimple for Advisors to Purpose Advisor Solutions as it focused in on Canadian consumers. 

    The company’s valuation is also down from its peak. Power Corp., which across several divisions together held a 55.1% undiluted equity interest as of June 30, said the fair value of its holding was $1.5 billion. That’s down from $2.1 billion in 2021. 

    But the company has still managed a steep climb in assets from growth across the board, whether it’s wealth management, trading and brokerage or its banking business, said Katchen. 

    It comes as Wealthsimple increasingly positions itself as a full-suite alternative to the big banks, including boosting its banking services last year, that has helped lead to a $20 billion boost to the bank’s net deposits. 

    “We’ve been pretty excited about a more complete product offering,” said Katchen.

    Product expansion to include mortgages, credit and insurance

    Wealthsimple, which also offers tax services after buying Simpletax in 2019, launched a mortgage offering earlier this year and plans more credit products ahead along with an expansion into insurance, he said.

    It’s all part of the company’s effort to rival the big banks, by having more than a trillion dollars in assets under administration. 

    While Katchen had originally said he’d want to reach that goal within the first 15 years, he’s now aiming for a slightly less ambitious timeline of within 20 years of co-founding Wealthsimple. 

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  • Swipe right: India’s love affair with digital payments

    Swipe right: India’s love affair with digital payments

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    Nearly 90 per cent of Indian consumers with internet access prefer digital payment options for online purchases, according to a report by Amazon Pay India and Kearney India. And this is true of small-town India as well.

    About 65 per cent of transactions by consumers in small-town India are now digital, while in larger cities this ratio was around 75 per cent, the report titled ‘How Urban India Pays’ noted.

    The survey spanned 120 cities, 6,000 consumers and over 1,000 merchants across India, and was conducted in the first quarter of 2024, at a time when regulatory action against some fintechs was at its peak.

    Nearly 5 per cent of the respondents preferred digital payments even for offline transactions. More than 85 per cent indicated a strong preference for digital payments for discretionary spending, such as for electronics, clothes and footwear.

    Affluent consumers lead the way with the highest degrees of digital payment usage [DDPU], tending to use various modes of digital payment for 80 per cent of their transactions. Meanwhile, consumers in the aspiring segment use digital payments for 67 per cent of transactions.

    Age, gender no bar

    Millennials and Gen X lead digital payments adoption, but the boomers are embracing digital wallets and cards at higher rates. Men and women both use digital payments in about 72 per cent of their transactions, indicating gender parity.

    While UPI reigns supreme with 53 per cent of consumers preferring it for online purchases, digital wallets and cards (credit, debit, and prepaid) are preferred by 30 per cent of consumers. Cash is still predominant in offline purchases, with 25 per cent of consumers preferring UPI and 20 per cent preferring digital wallets and cards. Co-branded credit cards, like the Amazon Pay ICICI credit card, are gaining momentum; 46 per cent of survey respondents reported owning at least one co-branded card, driven by their attractive rewards structure.

    Emerging modes like BNPL gain visibility as convenience, rewards propel India’s digital payment transformation, with 87 per cent awareness of the credit-based offering among respondents

    Ahmedabad, Pune, Indore, Jaipur, Lucknow, Patna, Bhopal and Bhubaneswar — despite their relatively lower retail potential compared to the top metros — demonstrate a digital payment adoption comparable to that of larger metros.

    Merchants drive change

    The study points out that 46 per cent of transactions for street vendors (paan shops, fruit and flower sellers, food stalls and kirana stores) are now digital. Digital modes of payment constitute around 69 per cent of the total transaction volumes for the Indian merchants surveyed.

    Across merchant types, the top reasons for preferring digital payments are convenience, trust, safety, and the ability to track transactions. About 63 per cent of the merchants admitted to accepting digital payments for transactions under ₹1,000 to prevent customers from going to competitors that accept digital payments.

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  • ‘Optimistic’ about embracing AI’s possibilities in banking, Starling CEO says

    ‘Optimistic’ about embracing AI’s possibilities in banking, Starling CEO says

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    Squawk Box Europe

    Raman Bhatia, CEO of Starling Bank, discusses the use of artificial intelligence in the banking sector. Footage courtesy of Money20/20.

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  • AI is the first time new technology is leading to real productivity benefits, ING COO says

    AI is the first time new technology is leading to real productivity benefits, ING COO says

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    Marnix van Stiphout, COO at ING, discusses artificial intelligence and digitalization in the banking sector.

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  • Quick check: How secure are your online banking habits?

    Quick check: How secure are your online banking habits?

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    With the increased acceptance of cashless payment methods among stores and merchants nowadays, CIMB Bank Philippines, the most awarded digital-only commercial bank in the country, stresses the importance of smart and secure online banking habits now more than ever.

    Results from the latest Consumer Payment Attitudes study by digital payment leader and CIMB’s longtime partner Visa showed that going cashless continued to gain momentum in the Philippines. Of the Filipinos surveyed, 43% shared that they now carry less cash in their wallets because of the growing habit of using cashless and contactless payments.

    CIMB believes that we all as individuals have a part to play in effective cybersecurity, and it is possible to bank and disburse money safely by practicing good online banking habits. Check out the list below and see which of your own online money habits may need some updating: 

    Use strong passwords and change them regularly

    Create strong, unique passwords for all your accounts. Utilize a mix of uppercase and lowercase letters, numbers, special characters, and even phrases. Remember to regularly update your passwords as well to minimize the risk of unauthorized access.

    Stay alert to scams

    Be vigilant against phishing, vishing, and smishing attempts. Scammers often use deceptive emails, calls, or texts to steal sensitive information. Remain cautious and skeptical of unsolicited communications.

    Stick to using secure networks

    Avoid accessing your online bank accounts on unsecured Wi-Fi networks, like those free connections offered in malls, cafes, and other public spaces. Only use connections you trust for your online banking activities to prevent hackers from intercepting your data.

    Transact through official platforms only

    To ensure safety, conduct all transactions and interactions exclusively through official app stores and websites. Third-party platforms may compromise your security and expose your personal information to risks, so avoid using them.

    Activate multi-factor authentication

    Whenever possible, activate multi-factor authentication for your accounts. This extra layer of security adds an additional barrier against unauthorized access to your accounts, as it requires multiple forms of verification.

    CIMB Bank PH encourages Filipinos to take charge of their accounts and bank responsibly so that they can focus on attaining financial security and helping them live their life purpose. To open your own CIMB account, all it takes is a few minutes via the CIMB mobile app. Filipino citizens who are at least 18 years old need to prepare only one valid ID. Having an account gives you access to CIMB’s groundbreaking deposit and loan products as well as special offers with record-breaking high interest rates.   

    CIMB Bank PH is a digital-only commercial bank and is part of the Malaysia-based CIMB Group, the 5th largest bank in ASEAN. To learn more about CIMB Bank PH’s innovative products and offers, visit cimbbank.com.ph

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  • Big bank executives will assure lawmakers the industry's crisis is over, KBW CEO Thomas Michaud predicts

    Big bank executives will assure lawmakers the industry's crisis is over, KBW CEO Thomas Michaud predicts

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  • EverBank selects FIS’ Digital One | Bank Automation News

    EverBank selects FIS’ Digital One | Bank Automation News

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    EverBank, formerly TIAA Bank, is converting its consumer digital banking operations to FIS’ Digital One to kick off 2024.   TIAA completed the sale of its subsidiary TIAA Bank to private investors in August and the bank has now rebranded as EverBank, according to an EverBank release.  As the $34.6 billion, Jacksonville, Fla.-based EverBank operates as […]

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  • One paycheck not enough: Digital bank Current finds almost half its customers have multiple jobs

    One paycheck not enough: Digital bank Current finds almost half its customers have multiple jobs

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    The need for second — and often third — incomes is mounting, according to a top digital bank executive.

    Current CEO Stuart Sopp finds almost half of the firm’s payment customers have more than one job.

    “If you’re having a paycheck over the past year, 20, 25% of paycheck depositors have at least one extra job. A further 20% incremental from there have two jobs,” Sopp told CNBC’s “Fast Money” on Thursday. “They’re trying to make that money go further because of inflation.”

    From DoorDash to Shopify to side businesses, Sopp finds the number is higher than prior years because money doesn’t go as far.

    “Wage inflation is moderating quite substantially,” he said. “America has a sort of tail of two cities right now. Two groups: The wealthy and less affluent.”

    Sopp launched Current, which provides mobile banking without monthly fees and offers secured credit cards, in 2015. It originally focused on helping medium to lower income customers. His company Current reports almost five million members.

    He’s particularly concerned about less affluent consumers spiraling into debt to pay for basic necessities.

    “They’re being forced into risks like risky credit cards,” noted Sopp, a former Morgan Stanley trader. “Unsecured credit cards… are not suitable for everyone.”

    The Federal Reserve Bank of New York found credit card debt topped $1 trillion for the first time ever in the second quarter.

    “It’s going to be way bigger this year,” Sopp said.

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  • Most middle-income Americans still earning less than 3% on savings, survey finds

    Most middle-income Americans still earning less than 3% on savings, survey finds

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    Despite inflation concerns, most middle-income Americans still aren’t leveraging higher interest rates for savings.

    That’s according to a new Santander survey of roughly 2,200 middle-earning U.S. adults, conducted in early September.

    Some 64% of middle-income Americans are earning less than 3% on their primary savings account, the findings show. By comparison, the top 1% average of high-yield savings accounts offer close to 5%, as of Oct. 30, according to DepositAccounts.

    More from Personal Finance:
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    The bank was surprised that 22% of consumers still don’t know how much they are earning on savings, said Tim Wennes, CEO of Santander U.S.

    But a lack of awareness isn’t the main reason why Americans aren’t taking advantage of higher rates, according to the survey. The top reason for not moving funds — applying to some 37% of respondents — was because they either don’t have any savings or don’t have enough to “make it worthwhile.”

    However, some 36% of those surveyed have at least $10,000 in savings or more, Wennes pointed out.

    “I would argue it is worth their while” to explore higher-yielding options, he said. “Become aware, look at your statements and then take action.”

    The survey also uncovered a lack of knowledge about the definition of savings products like certificates of deposit, high-yield savings accounts or money market accounts.

    Certificates of deposit can lock in higher rates

    As Americans brace for another interest rate update from the Federal Reserve this week, experts say savers may consider opening a CD to secure higher rates for a set period of time. While the central bank isn’t expected to raise rates, future policy shifts are still unclear.

    Currently, the top 1% average of CDs are offering nearly 5.75% for a one-year term, as of Oct. 30, according to DepositAccounts.

    “More and more of our customers are asking about higher interest rates,” said Wennes, noting there’s been a decade-high uptick in CD interest.

    Compared to options like high-yield savings or Series I bonds, top rates for one-year CDs could be a better deal, according to Ken Tumin, founder and editor of DepositAccounts.com.

    Of course, the right savings option largely depends on your goals and timeline. If you need to tap the funds in less than a year, CDs typically have an interest penalty, which lowers your overall yield.

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  • Citi Debuts Digital Banking Platform | Bank Automation News

    Citi Debuts Digital Banking Platform | Bank Automation News

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    Citigroup launched a digital platform for its commercial banking clients today as it continues to build out its digital offerings. The $2.4 trillion bank’s CitiDirect allows commercial banking clients to gain a consolidated view of their Citi banking relationship, with access to liquidity, exposure, trade and FX positions through side-by-side comparisons, delivering key data that […]

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  • Millionaires support raising Federal Deposit Insurance Corp. limits. They may be overlooking ways to access more coverage on deposits now

    Millionaires support raising Federal Deposit Insurance Corp. limits. They may be overlooking ways to access more coverage on deposits now

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    Customers outside a Silicon Valley Bank branch in Beverly Hills, California, on March 13, 2023.

    Lauren Justice | Bloomberg | Getty Images

    Most millionaires — 63% — support Congress raising FDIC coverage limits following the recent failures of Silicon Valley Bank and Signature Bank earlier this year, a new CNBC survey finds.

    The survey found the wealthiest millionaires are most supportive of raising those limits, with 67% of those with $5 million or more in assets, according to CNBC’s Millionaire Survey, which was conducted online in April.

    The survey included 764 respondents with $1 million or more in investable assets.

    Currently, the Federal Deposit Insurance Corp. insures $250,000 per depositor for each ownership category for deposits held at an insured bank.

    More from FA Playbook:

    Here’s a look at other stories impacting the financial advisor business.

    FDIC basic coverage limits were last changed in response to the financial crisis of 2008.

    That year, the standard maximum deposit insurance amount was temporarily raised to $250,000, from $100,000. Congress made that change permanent in 2010.

    Since then, the $250,000 coverage level has remained unchanged.

    The March failures of Silicon Valley Bank and Signature Bank — and early May takeover of First Republic — have prompted renewed focus on whether the FDIC’s current coverage should be updated.

    How future deposit insurance may change

    The FDIC in May released a report that outlined three options for the future of the deposit insurance system.

    That includes a first option of limited coverage, which would maintain the current structure with a “finite” deposit insurance limit across all depositors and types of accounts. This may include an increased, yet also “finite,” deposit insurance limit, the FDIC’s report states.

    Alternatively, a second reform option could usher in unlimited coverage with no limits.

    A third choice, targeted coverage, would provide different levels of deposit insurance coverage for different types of accounts, with higher coverage for business payment accounts.

    In May, FDIC Chairman Martin Gruenberg spoke positively of the third option when testifying before the Senate Banking Committee.

    “Targeted coverage for business payment accounts captures many of the financial stability benefits of expanded coverage while mitigating many of the undesirable consequences,” Gruenberg wrote in his written testimony.

    Providing higher coverage on business accounts would increase financial stability because it would help limit the risk for spillovers from uninsured deposits associated with business accounts, he noted.

    Notably, congressional action would be required for any expansion of FDIC insurance.

    How investors can boost FDIC coverage now

    Because it has been so long since the current $250,000 coverage limit has been raised, some argue it is time to lift it once again.

    “At a minimum, I would think it would be $500,000 just to deal with inflation, and I think the FDIC may need to consider that over time,” said Ted Jenkin, a certified financial planner and e CEO and founder of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta.

    Jenkin, a member of the CNBC Financial Advisor Council, said that when Silicon Valley Bank collapsed, people were contacting his firm to find out the best way to maximize their FDIC insurance.

    “Most people generally speaking don’t have millions of dollars of cash in the bank,” Jenkin said.

    At a minimum, I would think it would be $500,000 just to deal with inflation.

    Ted Jenkin

    CEO of oXYGen Financial

    As of December, more than 99% of deposit accounts were under the $250,000 deposit insurance limit, according to the FDIC.

    “But in the millionaire class, there are a lot of people now that may be sitting on $1 [million], $2 [million], $3 million in the bank,” he said.

    One of the biggest mistakes people make is to open up more bank accounts with the intention of amplifying their FDIC coverage on those deposits, Jenkin said.

    Instead, they may access higher levels of coverage if they add more beneficiaries — for example, their children — to those accounts, he said.

    Millionaires are betting on higher rates and a weaker economy, CNBC survey says

    Every beneficiary added brings another $250,000 in coverage, based on today’s limits.

    But one caution is that the way bank accounts are titled will supersede your will, Jenkin said.

    Investors may also amplify the amount of insured balances by having different kinds of accounts, such as savings accounts, individual retirement accounts or trust accounts.

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  • Why Americans are saving less in 2023

    Why Americans are saving less in 2023

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    Americans started the 2020s with a personal savings boom. The trillions in excess personal savings built up in the pandemic are beginning to vanish amid high inflation, according to Federal Reserve economists. The annual savings rate fell to a 15-year low in 2022. It started a recovery in 2023, but remains well below long-term trends. Despite this slowdown in saving, consumer spending has remained robust, keeping the U.S. from recession.

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  • Rent or buy? Here’s how to make that decision in the current real estate market

    Rent or buy? Here’s how to make that decision in the current real estate market

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    Choosing whether to rent or buy has never been a simple decision — and this ever-changing housing market isn’t making it any easier. With surging mortgage rates, record rents and home prices, a potential economic downturn and other lifestyle considerations, there’s so much to factor in.

    “This is an extraordinarily unique market because of the pandemic and because there was such a run on housing so you have home prices very high, you also have rent prices very high,” said Diana Olick, senior climate and real estate correspondent for CNBC.

    By the numbers, renting is often cheaper. On average across the 50 largest metro areas in the U.S., a typical renter pays about 40% less per month than a first-time homeowner, based on asking rents and monthly mortgage payments, according to Realtor.com.

    In December 2022, it was more cost-effective to rent than buy in 45 of those metros, the real estate site found. That’s up from 30 markets the prior year.

    How does that work out in terms of monthly costs? In the top 10 metro regions that favored renting, monthly starter homeownership costs were an average of $1,920 higher than rents.

    But that has not proven to be the case for everyone.

    Leland and Stephanie Jernigan recently purchased their first home in Cleveland for $285,000 — or about $100 per square foot. The family of seven will also have Leland’s mother, who has been fighting breast cancer, moving in with them.

    By their calculations, this move — which expands their space threefold and allowing them to take care of Leland’s mother — will be saving them more than $700 per month.

    ‘You don’t buy a house based on the price of the house’

    “You don’t buy a house based on the price of the house,” Olick said. “You buy it based on the monthly payment that’s going to be principal and interest and insurance and property taxes. If that calculation works for you and it’s not that much of your income, perhaps a third of your income, then it’s probably a good bet for you, especially if you expect to stay in that home for more than 10 years. You will build equity in the home over the long term, and renting a house is really just throwing money out.”

    Mortgage rates dropped slightly in early March, due to the stress on the banking system from the recent bank failures. They are moving up again, although they are currently not as high as they were last fall. The average rate on a 30-year fixed-rate mortgage is 6.59% as of April — up from 3.3% around the same time in 2021.

    But that hasn’t significantly dampened demand.

    “As the markets kind of bubbled in certain parts of the country and other parts of the country priced out, we’ve seen a lot of investors coming in looking for affordable homes that they can buy and rent,” said Michael Azzam, a real estate agent and founder of The Azzam Group in Cleveland.

    “We’re still seeing relatively high demand” he added. “Prices have still continued to appreciate even with interest rates where they’re at. And so we’re still seeing a pretty active market here.”

    Buying a home is part of the American Dream

    The Jernigans are achieving a big part of the American Dream. Buying a home is a life event that 74% of respondents in a 2022 Bankrate survey ranked as the highest gauge of prosperity — eclipsing even having a career, children or a college degree.

    The purchase is also a full-circle moment for Leland, who grew up in East Cleveland, where his family was on government assistance.

    “I came from a single-mother home who struggled to put food on the table and always wanted better for her children … it was more criminals than there were police … It is not the type of neighborhood that I wanted my children to grow up in,” said Jernigan.

    The new homeowner also has his eye on building a brighter future for more children than just his own. Jernigan plans to purchase homes in his old neighborhood, renovate them and create a safe space for those growing up like he did.

    “I’m here because someone saw me and saw the potential in me and gave me advice that helped me. … and I just want to pay it forward to someone else” Jernigan said.

    Watch the video above to learn more.

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  • Don’t assume the interest on your savings account is keeping up with Federal Reserve rate hikes. Here’s why

    Don’t assume the interest on your savings account is keeping up with Federal Reserve rate hikes. Here’s why

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    Valentinrussanov | E+ | Getty Images

    As the Federal Reserve continues to hike interest rates, you may assume you’re earning more on the money in your savings account.

    But that may not be the case.

    related investing news

    CNBC Pro

    Carolyn McClanahan, a certified financial planner at Life Planning Partners in Jacksonville, Florida, was recently surprised when a client told her he was hardly making any interest on his cash.

    The interest rate on his Capital One account was 0.3%, far lower than the 3.3% annual percentage yield the firm is currently advertising for new savings accounts. McClanahan discovered the same situation when she checked her own Capital One account.

    “I was not happy,” McClanahan said.

    While a call to Capital One’s customer service revealed it was possible to access the higher interest rate by opening a new account, McClanahan decided it was better to move the money elsewhere.

    “I’ve been recommending Capital One for a long time, and they are now off my list,” McClanahan said.

    Capital One did not immediately respond to requests for comment.

    The Federal Reserve has raised the federal funds rate to the highest levels since 2007. While that makes borrowing more expensive for credit cards and other accounts, the expectation is that it will also push up the interest consumers can make on their cash savings.

    Some online savings accounts are touting rates as high as 4%. Some certificates of deposit, or CDs, may provide higher rates, depending on the term.

    Rates are expected to climb even higher as Federal Reserve poised to continue its hiking cycle in 2023. Bankrate.com predicts top-yielding national money market and savings accounts could climb to 5.25% by year end.

    Yet like McClanahan, others may be in for a surprise if they realize their accounts are not keeping up with those top rates.

    “Consumers need to check their accounts at least once a month to see what their accounts are earning,” said Ken Tumin, senior industry analyst at LendingTree and founder of Deposit Accounts.

    “Don’t assume it’s the latest greatest rate,” he said.

    More from Personal Finance:
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    Following Fed rate hikes, online savings accounts should generally be in the ballpark of the federal funds rate within about a month, according to Tumin.

    There are signs that may help consumers spot when they may get shortchanged on rates.

    Watch for changing account names, Tumin said. If a bank is touting savings offers under a new account name from when you opened your account, the terms you are subject to might not be the latest.

    If you see a new account, often you can request to be upgraded.

    “That’s an easy way to get the benefit of the higher rate,” Tumin said.

    Also be more vigilant when a bank, such as Emigrant Bank, has more than one online division, Tumin said. In September, Emigrant’s Dollar Savings Direct division was the first to offer 3% on an account, which eventually climbed to 3.5%.

    Now, however, its My Savings Direct division has the highest rate for an online account, with 4.35%, Tumin noted.

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  • UK legislation to force shared hubs | Bank Automation News

    UK legislation to force shared hubs | Bank Automation News

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    LONDON — The U.K. government is stepping in to ensure continuity of bank services for isolated communities and vulnerable, elderly or financially excluded customers with its new access to cash legislation, which is part of its imminent Financial Services and Markets Bill. Bank branches are still needed for legacy non-digital banking customers, “but less often […]

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    Neil Ainger

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  • New Survey From Sagewell Financial Reveals One-Third of Senior Women Have Less Than 10K Saved for Retirement, 70% of Seniors Willing to Work During Retirement

    New Survey From Sagewell Financial Reveals One-Third of Senior Women Have Less Than 10K Saved for Retirement, 70% of Seniors Willing to Work During Retirement

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    Data also reveals the significant toll the war in Ukraine, the pandemic, and rampant fraud have had on their retirement certainty

    Press Release
    –

    Jun 21, 2022


    CAMBRIDGE, Mass., June 21, 2022 (Newswire.com)
    –
    A new survey on senior finances shows that 33% of seniors have been victims of financial fraud, and 27% have less than $10K saved for retirement. These and other findings were revealed in The Sagewell Senior Certainty Index produced by Sagewell Financial, the first online banking platform designed specifically for digital seniors. 

    The survey also shined a light on the gender gap in retirement savings, as nearly one-third of women have less than $10K saved for retirement, and more than 60% are concerned they will run out of money. 

    Nearly three-quarters of all seniors were concerned that the war in Ukraine could impact their retirement planning and savings, while only 45% felt the same way about the pandemic. More than seven out of 10 are planning to or willing to work in retirement, and 29% are using or interested in crypto as an investment.

    Other Key Findings

    Digital Seniors Plan To Retire Differently Than Previous Generations

    • 39% plan to retire after 65.
    • 69% plan to or would like to age in place. 
    • 44% said their confidence about sticking to their retirement plan has changed over the past 12 months. 
    • Only 23% were confident they are prepared if Social Security runs out.

    “While the pandemic changed the way Americans work, the Baby Boomers have changed the way they retire,” said Jeffrey Wright, COO and co-founder of Sagewell Financial. “They are planning to retire later, and many are planning to work in some capacity. They’re concerned about Social Security being available to them and if it will be enough to cover their skyrocketing healthcare, housing, and cost of living expenses due to inflation.”

    Paying For Retirement

    • 27% have less than $10K saved for retirement, and 40% have less than $50K.
    • 57% are concerned that they will run out of money.
    • 82% do not feel confident about their access to cash or liquidity in retirement.
    • 73% said they welcome some income smoothing (receiving consistent income in the form of one or two consolidated monthly checks.)

    “It is disheartening to learn that more than a quarter of Baby Boomers have less than $10K saved for retirement — that number jumps to 32% among women,” said Sam Zimmerman, co-founder and CEO of Sagewell. “Nearly 60% of seniors expect to live on less than $3K a month in retirement. We are at a crisis point now, and it will worsen unless we take drastic steps to improve the way our seniors plan for and live in retirement.”

    Gender Inequity

    • 42% of women expect to receive less than $3K monthly in retirement (27% of men).  
    • 15% expect less than $1K (6% of men).
    • 32% have less than $10K saved for retirement (18% of men).
    • 47% have less than $50K saved for retirement (30% of men).
    • 15% have more than $500K saved for retirement (28% of men).

    “The disparities revealed in this survey are striking and clearly show the long-term implications of the four ‘women’s financial gaps,’” Marcia Mantell of Mantell Retirement Consulting, Inc. shares. “Most women on the cusp of retirement have faced a wage gap, mom gap, care gap, and/or widow gap. Each of these gaps results in significantly lower Social Security checks and fewer opportunities to save enough for a secure retirement.”

    The Sagewell Senior Certainty Index

    The Sagewell Senior Certainty Index is an online, random sample survey of 1,004 Americans between 55-67 who are approaching retirement or recently retired. The survey was conducted in May 2022 to gauge how seniors, particularly those who are online (“digital seniors”), view the certainty of their retirement planning in a post-pandemic world. 

    A complete copy of the survey results that include additional findings regarding seniors’ opinions on Social Security, the economy, financial technology, retirement income, planning, and savings can be found here: https://www.sagewellfinancial.com/sagewell-press-and-media/.

    About Sagewell Financial

    Based in Cambridge, Massachusetts, Sagewell is a team of technology and financial services professionals passionate about changing the financial lives of digital seniors in this country. Our team has created new products for some of the world’s biggest banks and insurance companies and even NASA. They’re using that experience to solve one of the most glaring problems of our time — the financial crisis faced every day by nearly 60 million Americans. Learn more at www.sagewellfinancial.com.    

    Media Contact: 
    Elizabeth Yekhtikian for Sagewell Financial
    ey@earnedmediaconsultants.com      

    Source: Sagewell Financial

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