Financial fears at the forefront

Of the women surveyed:

  • 65% were not satisfied with their current financial situation

  • 57% said after meeting current financial obligations, they have little left to put away for retirement

  • 60% felt primarily responsible for making sure their parents received good long term health care

  • 41% cited their biggest fear as becoming a financial burden to their family

Source: What Women Really Want, Securian Financial Group Survey, 2007

 

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Gaining ground
What women really want: financial stability

Today's women have made great strides in terms of wealth and the workforce. Consider the latest statistics:

  • As of 2010, women control 33% of North America's wealth.
  • Women account for almost half of the nation's corporate management positions and are starting businesses at twice the rate of their male counterparts.
  • Over 10 million businesses are owned by women.

Despite this progress, women still face unique financial challenges. Often women balance work and home life, providing primary care for their children and parents. Women tend to live longer than men and run a higher risk of outliving retirement savings. Only half of women feel confident about investing, even though a whopping 83% are responsible for household purchasing decisions.

According to a study by Securian Financial Group, women want financial stability now more than ever. With the right education, women can understand and strengthen their resources. Aware shares tips from the survey findings to address financial challenges head on.

Stop worrying and start talking

Women's survey responses showed that nearly two thirds often worry about financial security, and 65% of respondents were not satisfied with their current financial situation. Roughly 40 percent cited their biggest fear as becoming a financial burden to their family.

Seek help from a trustworthy source

Working with a financial advisor can be an important factor in determining whether someone achieves her financial goals. To find an advisor, women can research online, ask for referrals from family and friends who share the same values, and conduct an “informal interview” to get to know an advisor before an initial consultation.

Get retirement-ready with budgeting and saving goals

The age-old struggle of "save versus spend" was frustrating for women in the Securian survey. Women reported wanting an efficient way to save for retirement while still meeting day-to-day financial needs. It's a common misconception that saving for retirement means not having a comfortable lifestyle today; almost half of women reported they are focused on living well today rather than planning for retirement. And almost 60 percent said after meeting current financial obligations, they have very little left to put away for retirement.

A thorough, independent budget analysis can help identify whether too much money is being spent on "wants" versus "needs." It can also show strategies for reaching long-term financial goals, including saving for retirement.

Focus on the family: caring for aging parents

Long-term health care for aging parents is a major concern for women. As life expectancies increase, the need for home and facility care is rapidly rising – a reality that women recognize. Sixty percent felt primarily responsible for making sure their parents received good care. Seventy percent believed they would be the person to care for their parents in their own home, and half would leave their jobs at least temporarily to take care of their elderly parents.

Caring for aging parents can have a significant financial, professional and personal impact, so it's a good idea to plan ahead and have a family discussion before parents ever need care. The discussion should include the topic of long term health care and how to address its financial impact.

Insurance and inheritance: providing for the next generation

Although almost all women surveyed wanted to financially assist their children, they were evenly split on how to provide help. Fifty-six percent felt leaving an inheritance was important, and the same amount said they'd rather spend money on their children now – such as helping them buy a house or pay for college. Despite this desire to provide, over one third said they would not be able to afford it, citing lack of money as the main reason for not leaving an inheritance.

Identifying whether to leave an inheritance is an important decision that can't be delayed. Working with a financial advisor can help determine whether doing so is a good financial strategy and can pinpoint financial vehicles to maximize the impact of a legacy. If the decision is made to help with current needs, such as college funding, it's important to estimate the cost of a college education and develop a savings plan well ahead of time.

Look to your employer’s benefits plan

Understanding employer offerings and taking full advantage of available workplace benefits is key to any financial strategy.

Group life insurance purchased at the workplace is not only affordable but also protects against the loss of income at the death of a wage earner. Proceeds from a life insurance policy also can help ensure dependents are not burdened with significant debt or the need to sell assets to pay outstanding bills or taxes. Employee savings plans such as pension plans, profit-sharing plans and 401(k)s are an important way to accomplish savings goals.

Financial security for the long run

By seeking advice and being aware of their options, women can prepare for the unexpected. Information and education are two of the best remedies for financial concerns. To learn more about the Securian study and to find resources that address financial challenges at specific life stages, visit Securian.com.

Sources:

Castro, Brittney. Financially wise women: Empowering the relationship between women and money. 2007.

Frank, Robert. The Wealth Report Blog. What Wealthy Women Want. July 29, 2010.

What Women Really Want, Securian Financial Group Survey, 2007