Women have never had it so good financially, or so you would think. Female empowerment has resulted in more women reaching top positions in the workplace, better female earning capacity and a highly educated female population. Indeed, women are expected to control 60 percent of the wealth in the US by 2010. Yet despite all they have achieved, women in the US still feel financially insecure, with nearly half worrying about losing their assets, according to the new study entitled Women, Money and Power for Allianz Life Insurance Company of North America.
About 90 percent of women surveyed said they felt "somewhat" or "not at all" financially secure and almost half of those surveyed feared losing all their money and becoming financially destitute. This even applied to those women who earned more than $100,000 annually, according to the survey of 1,925 women in the US, conducted by Harris Interactive for Allianz Life.
Despite this insecurity, women saw financial security and freedom as 15 to 20 times more important to them as money-related status or respect, the report declared.
Women, Money and Power
Women's earning power is on the increase, yet most women in the US still don't feel financially secure, with about half worrying about becoming impoverished, according to a new Allianz Life study. Allianz.com News examines the results.
Women have never had it so good financially
Women stash cash
Women's fear of losing it all may explain why women are twice as likely as men to have a secret stash in case of a financial emergency, according to the study, which also surveyed 1,258 men.
Men and women clearly don't communicate well when it comes to who is holding the purse strings. According to wives, husbands overestimate their leadership role when it comes to savings and investments by a factor of three to one.
High debt and low savings are the major sources of financial conflicts between men and women. 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. And while husbands and wives agree that couples should meet together with a financial advisor, about half of the couples go alone, the study reported.
The adage of marrying well no longer seems relevant – "marry someone who was financially stable" was at the bottom of the list by a factor of 10 to 1. This is hardly surprising in an age when women's median income has increased by over 60 percent over the past thirty years, while men's median income has hardly increased at all. Moreover, sixty percent of women with business degrees out-earn their husbands. Fortunately, men overwhelmingly find financially independent women sexy – only 4 percent of men surveyed disagreed.
Men and women clearly don't communicate well when it comes to who is holding the purse strings. According to wives, husbands overestimate their leadership role when it comes to savings and investments by a factor of three to one.
High debt and low savings are the major sources of financial conflicts between men and women. 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. And while husbands and wives agree that couples should meet together with a financial advisor, about half of the couples go alone, the study reported.
The adage of marrying well no longer seems relevant – "marry someone who was financially stable" was at the bottom of the list by a factor of 10 to 1. This is hardly surprising in an age when women's median income has increased by over 60 percent over the past thirty years, while men's median income has hardly increased at all. Moreover, sixty percent of women with business degrees out-earn their husbands. Fortunately, men overwhelmingly find financially independent women sexy – only 4 percent of men surveyed disagreed.
Mark Zesbaugh: "the time is right for the financial services industry to adapt their approach to women"
Women's changing needs
The study results highlight how the financial services industry needs to adapt to meet the changing requirements of female financial decision makers. And Allianz Life is ready to react. "The financial services industry has largely handled the financial needs of women the same way they handle men's," says Mark Zesbaugh, president and CEO of Allianz Life. "Given women's evolving role in the economy and society, and now the insight we've gleaned from this research, the time is right for the financial services industry to adapt their approach to women."
The financial services industry can introduce key changes to address women's changing needs, such as understanding that women are taking more control of their own and their families' finances, the study indicated.
Moreover, financial services companies need to realise the differences in women and segmenting according to age, personality traits, attitudes and behaviours, as well as the differing financial needs of women and men. Women stress the need for less worry, less aggressive investing, more security and predictability and easier access to understandable financial information when it comes to their financial requirements. A lack of knowledge is seen as women's biggest barrier to getting more involved with managing savings and investments – four times as much a barrier as a lack of time.
Ultimately, the study will serve to guide financial advisers to find effective financial strategies for their female clients, says Lisa Resnick, president of Life and Long-Term Care Insurance for Allianz Life. Women who work with a financial advisor feel more financially secure, confident and optimistic and more likely to achieve financial security, the study claims.
The financial services industry can introduce key changes to address women's changing needs, such as understanding that women are taking more control of their own and their families' finances, the study indicated.
Moreover, financial services companies need to realise the differences in women and segmenting according to age, personality traits, attitudes and behaviours, as well as the differing financial needs of women and men. Women stress the need for less worry, less aggressive investing, more security and predictability and easier access to understandable financial information when it comes to their financial requirements. A lack of knowledge is seen as women's biggest barrier to getting more involved with managing savings and investments – four times as much a barrier as a lack of time.
Ultimately, the study will serve to guide financial advisers to find effective financial strategies for their female clients, says Lisa Resnick, president of Life and Long-Term Care Insurance for Allianz Life. Women who work with a financial advisor feel more financially secure, confident and optimistic and more likely to achieve financial security, the study claims.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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