The women of today are better educated, enjoy successful careers and are expected to control 60 percent of the wealth in the US by 2010. Yet women remain financially insecure, according to a new study by Allianz Life Insurance Company of North America. About 90 percent of women surveyed in the study said they felt "somewhat" or "not at all" financially secure and almost half expressed fear of becoming financially destitute.
So what is causing all of this insecurity? According to Lisa Resnick, president of Life and Long-Term Care Insurance for Allianz Life, one reason is women's increasing longevity. "Women tend to live about eight years more than men, and they realize that their husband may use up their savings for medical care and support before leaving them alone and without money in their retirement years."
Allianz Life highlights changing female needs
Women’s financial requirements are evolving, according to a recent Allianz Life study. Allianz.com News talks to Lisa Resnick, president of Life and Long-Term Care Insurance at Allianz Life, about the results.
Resnick: "one of women's main needs in terms of financial products is predictability"
Changing roles
The insecurity also stems from women's changing role in society. Today's woman finds herself in an unprecedented societal and economic shift. Two-thirds of US women are now active in the workforce, compared with one third in the 1950s.
Fifty years ago, men controlled all of a couple's long-term financial planning. Women's roles in society, the economy and at home have now evolved to the extent that an increasing amount of decision-making and control falls to women.
Apart from that, demographics in the US have shifted. Nowadays, single executive women who choose not to get married, single mothers, as well as divorced women realize that they have to look after their own financial needs and possibly those of their children.
In addition, these women are likely to live a long time and can't necessarily count on receiving a pension or social security. This is why many women ultimately recognize that they don't have as much support or reliability as before and feel insecure, Resnick explains.
Fifty years ago, men controlled all of a couple's long-term financial planning. Women's roles in society, the economy and at home have now evolved to the extent that an increasing amount of decision-making and control falls to women.
Apart from that, demographics in the US have shifted. Nowadays, single executive women who choose not to get married, single mothers, as well as divorced women realize that they have to look after their own financial needs and possibly those of their children.
In addition, these women are likely to live a long time and can't necessarily count on receiving a pension or social security. This is why many women ultimately recognize that they don't have as much support or reliability as before and feel insecure, Resnick explains.
Risky business?
The study highlights dramatically different approaches between men and women when it comes to finances. Men are three times more likely than women to take risks. What is more, men overestimated their leadership role in savings and investments by a factor of three to one. A lot of this results from poor communication. Men feel that they should take control of finances because of their own cultural expectations, even though many women are happy to take on that role.
Finances are often the cause of marital conflict. Money is 20 times more likely to trigger arguments in a marriage than sex, particularly the fear among couples that they are not saving enough money or that they are in too much debt. Women are more likely to attribute arguments about money to issues of power and control, while men are more likely to attribute it to trust, the study indicated.
Finances are often the cause of marital conflict. Money is 20 times more likely to trigger arguments in a marriage than sex, particularly the fear among couples that they are not saving enough money or that they are in too much debt. Women are more likely to attribute arguments about money to issues of power and control, while men are more likely to attribute it to trust, the study indicated.
Implications for Allianz Life
Allianz Life is confident that the study will give it an edge over its competitors and help define its brand. "Allianz Life is acting as a thought-leader in the industry by being the first financial services company to carry out such an in-depth study on women, money and power," says Resnick.
Moreover, the study is helping the company adapt to what women want and need. Although Allianz Life doesn't issue gender-specific products, it is confident that some of its products are already geared to women's requirements. It now wants to make these products and their attributes more understandable to women. "For example, one of women's main needs in terms of financial products is predictability and this can be found in annuities, which provide a guaranteed life-time income," says Resnick.
Allianz Life is building some tools to reach out to women and educate them. This follows the study's discovery that a lack of knowledge is the biggest barrier to women becoming more involved in managing household finances – four times as much a barrier as a lack of time.
Women want to see more relevant education in schools to help with financial planning, the study showed. Allianz Life is responding by working in partnership with Blue Zones, an organization dedicated to innovative exploration of health and longevity. Blue Zones will reach children aged 10 to 15 in 20,000 classrooms across the US to teach them about health and financial money matters.
Moreover, the study is helping the company adapt to what women want and need. Although Allianz Life doesn't issue gender-specific products, it is confident that some of its products are already geared to women's requirements. It now wants to make these products and their attributes more understandable to women. "For example, one of women's main needs in terms of financial products is predictability and this can be found in annuities, which provide a guaranteed life-time income," says Resnick.
Allianz Life is building some tools to reach out to women and educate them. This follows the study's discovery that a lack of knowledge is the biggest barrier to women becoming more involved in managing household finances – four times as much a barrier as a lack of time.
Women want to see more relevant education in schools to help with financial planning, the study showed. Allianz Life is responding by working in partnership with Blue Zones, an organization dedicated to innovative exploration of health and longevity. Blue Zones will reach children aged 10 to 15 in 20,000 classrooms across the US to teach them about health and financial money matters.
Talking women's language
Allianz Life sees the study as a great opportunity to bring awareness to financial advisors. After all, the company has the largest independent advisor network in the US. Allianz Life will hold a few "webinars", namely seminars held over the Internet, between now and the end of the year to share the study's findings with financial advisors.
According to the study, women are more than twice as likely as men to choose to work with a female financial advisor; however, 80 percent of financial advisors are men. Allianz believes that women are seeking advisors who know what women want and need. "We want to speak in the right language to women and speak in a way which women understand," says Resnick.
According to the study, women are more than twice as likely as men to choose to work with a female financial advisor; however, 80 percent of financial advisors are men. Allianz believes that women are seeking advisors who know what women want and need. "We want to speak in the right language to women and speak in a way which women understand," says Resnick.
Harris Interactive fielded a nationwide online survey for Allianz among 3,183 US adults, namely 1,258 men and 1,925 women. The survey was conducted in the US between May 4, 2006 and July 5,2006.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
For further information
