Cecily O'Connor
RedwoodAge.com

Even as President Obama eyes new initiatives to make it easier to save for retirement, many individuals are already resolved to get by with less in their golden years.

Women, in particular, are more likely to settle with what they've got. That's based on findings from a TD Ameritrade study that found 73 percent of women are "comfortable" accumulating less than $1 million in savings before retirement, compared to 63 percent of men. About 22 percent of women would like to accumulate more than $1 million, compared to 32 percent of men.

To be sure, the amount every individual needs to retire will vary dramatically, depending on where they live, their health status, and retirement living goals, among other factors. But no matter the sum, most adults are feeling strapped by the economy as they plan for the future.

“The volatility of the markets in recent years seems to have had a lasting impact on women when it comes to retirement planning," said Diane Young, director, retirement and goal planning at TD Ameritrade. "Their confidence has been bruised, and they’ve become even more cautious when it comes to their finances.

As a group, women tend to have a different set of financial hurdles to overcome, compared to men. For example, they tend to live longer, earn less, and take time away from paid work to care for families, which results in less retirement savings. In certain cases, that means women are at far greater risk of living in poverty in retirement.  One in five single women age 65 or older currently find themselves in that situation, according to recent figures from the Women's Institute for a Secure Retirement (WISER).

Retirement on President's Agenda
While attention on Americans' cracked nest eggs has taken a back seat to issues such as healthcare, the president is shining the spotlight back on savings habits. Among his priorities are initiatives that will expand 401(k) automatic enrollment, make it easier for families to save a portion or all of their tax refunds, enable workers to convert unused vacation into additional retirement savings, and help workers and employers better understand their options through clear financial lingo.

Renewed emphasis investing habits comes as Americans have collectively lost about $2 trillion in retirement savings, thanks to a decline in the financial markets. The drop in home values has also meant a drop in the value of the largest single investment most families have.

For boomers nearing retirement, those losses are harder to recoup, even though some older adults to plan to work longer. About 29 percent of adult women expect to have a "downscale lifestyle" in which they can pay the bills and remain independent when they stop working, compared to 22 percent of men.

At the other end of the spectrum, 68 percent of men expect to live a "comfortable lifestyle" where they live modestly and can afford some luxuries, compared to 58 percent of women.

Both sexes, however, said that being able to afford rising healthcare costs will be their No. 1 retirement challenge.

“This instability should actually serve as a motivator for women,” Young said. “The key is to do everything you can to understand your current financial situation and plan accordingly to make sure your assets will last in retirement."

Young recommended both men and women pursue the following options to prepare for retirement:

• Take advantage your employer's retirement saving/investing vehicles such as 401(k) or 403(b) plans;
• If you are not employed, seek out community resources for retirement planning guidance, or go online for additional information;
• Find a friend who would like to learn more about retirement planning and vow to plan together;
• Join or start a local investment club to surround yourself with other like-minded investors;
• Determine whether your investment firm or bank offers seminars or other educational content to help you plan; and
• Ask a professional to review your portfolio to determine if you’re properly diversified for your goals.