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Women are focused on today and tomorrow
Nearly all women (90 percent) say it’s important to stay on track of managing day-to-day living expenses, compared to 79 percent of men. And while both men and women are optimistic about their financial futures1, women are more likely to say it is very important to save for the future, which includes both retirement and other financial goals2.
“Our research shows that across the board, women place a higher level of importance on financial goals,” said
Women also understand the value of planning for income in retirement —71 percent believe retirement income planning is an important wealth-protection strategy for the future. And according to
As part of that strong focus on the future, women are more likely than men to view life insurance as critical to their financial well-being — and they’re taking action. In 2016, 56 percent of women surveyed owned life insurance, compared to 49 percent in 20134.
Women understand they can’t control everything
Women are also more aware than men that unexpected issues beyond their control could affect their financial futures. This awareness sets the stage for women to put in place financial protections that can help them be more prepared in the event of unforeseen circumstances – if they are made aware of their options. Just 16 percent of women feel very confident that they would be able to cover their current expenses if they were faced with a serious injury or illness. Forty percent of women worry about becoming unable to work and make money due to a disability5. Women also feel significantly less prepared than men to protect their wealth from external factors such as taxes, inflation and market volatility6.
“Women have a firm grasp on the reality that unexpected health and other issues can arise at any time – disrupting life and throwing a wrench into financial plans,” said
Benefits frequently offered through the workplace, such as disability insurance, accident insurance and critical illness insurance, can help provide a layer of financial security in case of emergency. Many women are already taking advantage of these protections — 63 percent of women offered disability insurance are currently enrolled, compared to 58 percent of men. However, not as many are taking advantage of benefits like accident insurance and critical illness insurance, which can help cover the cost of high deductibles or even provide a lump-sum payout in the case of a serious illness or injury. Just 52 percent of those offered accident insurance are enrolled, and 35 percent are enrolled in critical illness insurance. These types of coverages typically come at minimal cost through an employer.
Long-term care coverage is another important consideration for women. The majority of caregivers in the
Women benefit from personalized guidance
A financial advisor can help women take a holistic view of their finances, from accumulation, to protection to distribution, helping them ensure all considerations are taken into account and planned accordingly. A relationship with a financial advisor is something women value – research shows that 70 percent of women believe an advisor can provide wealth protection strategies they could not find on their own6 .
That personalized guidance drives action – 71 percent of women say in-person meetings motivate them to make positive changes in their retirement savings and investing, compared to 62 percent of men – helping women continue to improve their financial savvy.
“Women can build on their financial strengths by taking simple steps,” Ohl said. “Meeting with an advisor, saving more for retirement and learning what options are available can help women protect their current and future incomes and help them become even stronger financially.”
For more information about how women can take charge and fortify their financial strengths, go to www.lfg.com/women.
To learn more about the research cited here, visit our Newsroom.