Study finds that women are more likely to financially prepare for the future
In a weird way, the gender gap might actually help women.
They worry about money more, so they take it more seriously — and may come out ahead, according to a new study.
Women save more than men, are more prepared for financial emergencies, and are more likely to consult a financial adviser, says the study from insurance advisers Lincoln Financial Group.
The group used data from three different studies that asked just over 6,000 employed people between the age of 18 and 65 about how they prioritize their savings.
Although women are not earning the same as men — with no equality in sight for over 200 years — women are more likely to stick to their financial goals.
“While both men and women are optimistic about their financial futures, women are more likely to say it is very important to save for the future, which includes both retirement and other financial goals,” according to the report.
Sixty-five percent of men say it is somewhat or very important that they save for financial goals other than retirement, while 84 percent of women say the same.
When it comes to retirement, 93 percent of women say it is important to stay on track for retirement saving, compared to 87 percent of men. This concern is warranted, as “women were 80 percent more likely than men to be impoverished at age 65 and older,” says a study by the National Institute on Retirement Security.
That mentality carries over to how women perceive life insurance and other benefits.
Women also worry more about health care costs
“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,” the report reads. On top of that, “Women are also more aware than men that unexpected issues beyond their control could affect their financial futures.”
For women, the biggest concerns is being diagnosed with cancer, followed by stress, chronic illness, being in a car accident and being unable to work due to a disability. All of these are bigger stressors for women than men.
Despite being more aware and concerned of these possibilities, only 16 percent of women are confident they could cover their expenses from a serious illness or injury, compared to 22 percent of men.
“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,” says Diane Russell, senior VP of group benefits at Lincoln Financial Group. “And women can turn this concern into a strength by arming themselves with the right financial protections. For example, enrolling in various insurance coverages through work can help protect income and safeguard financially against the unknown.”
With benefits, the majority of women studied said they were knowledgeable in health, dental, vision, retirement savings and life insurance, but said they had little to no knowledge of accident, disability and illness insurance.
Unlike men, most women like to discuss their financial and benefits plan with a personal adviser. While 62 percent of men turn to an adviser to stay financially savvy, 71 percent of women say they turn to advisers for help.
Women take most financial issues more seriously
Here’s the whole list of what financial issues women prioritize over men…
- Saving for retirement: Men: 87 percent, Women: 93 percent
- Managing debt: Men: 83 percent, Women: 91 percent
- Your health and well-being: Men: 83 percent, Women: 91 percent
- Managing day-to-day living expenses: Men: 79 percent, Women: 90 percent
- Balancing personal and career interests: Men: 74 percent, Women: 85 percent
- Understanding options available to you regarding health/medical expenses: Men: 72 percent, Women: 87 percent
- Personal growth: Men: 70 percent, Women: 82 percent
- Saving for a financial goal other than retirement: Men: 65 percent, Women: 84 percent
- Advancing in your career: Men: 67 percent, Women: 61 percent
That last one is the only area where men outpace women — and it’s as much about the appearance of success as getting ahead financially.
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Article last modified on May 18, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Women Manage Money Better Than Men - AMP.