When it comes to personal finance, there are some areas where women simply do it better, according to recent research from Lincoln Financial Group (LNC). Findings show that women, more than men, understand the importance of saving, recognize that unexpected events have the potential to disrupt financial stability, and are taking action to help secure their financial futures. Women have the opportunity to build on these strengths, while also focusing on areas where they can improve, such as taking steps to protect their income and wealth.
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.
Women understand they can’t control everything
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 Phoenix Marketing International3, female decision-makers are more likely to incorporate financial products that help accumulate assets to provide income for retirement – such as an annuity – into their financial plans than male decision-makers. 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 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 Diane Russell, Senior Vice President 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.”
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 .
“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.”