Recent studies show that women increasingly make financial decisions for the family. To better educate advisors on those needs, the Insured Retirement Institute (IRI) released a report concerning that topic.
So, what did the report discover: “When compared to men, women are less confident that they will have enough money to live comfortably throughout their retirement.” Going inside the numbers, 34 percent of women expressed confidence, compared to 41 percent of men.
As a silver lining for financial advisors, roughly 50 percent of women with at least $500,000 in investable assets “feel they need assistance in some areas of managing their finances.” So there is opportunity there.
According to IRI President and CEO Cathy Weatherford: “The encouraging news is that women who use financial professionals are more content about their financial future when compared to those who do not engage a professional, underscoring the vital role advisors can play in helping women reach their retirement savings goals.”
Additional findings from the report:
- Marital status is a significant factor in the need for retirement income advice, with 44 percent of married women believing they are doing a good job of preparing for their retirement years, compared to 23 percent of unmarried women.
- A financial advisor can play a prominent role in the level of confidence women have, with 53 percent of married women having contacted a financial planner for retirement income advice compared to 32 percent of unmarried women.
- Overall, married women are more likely to be better prepared for retirement than unmarried women, with six out of 10 married women saying they have tried to determine the amount of money they will need to save for retirement, compared to four out of 10 of unmarried women.
- Married women are more likely to have contacted a financial planner for retirement income advice, with 53 percent stating they have done so, compared to 32 percent of unmarried women.
- Forty percent of women believe they are doing a good job of preparing financially for retirement, compared to 48 percent of men.
- Nearly half of unmarried women expect Social Security to be a major source of retirement income (49 percent) compared to 39 percent of married women.