What You Need to Know
- Even among the highest earners, only 44% said they knew how to address inflation risk in their portfolios.
- Only 12% of women said they were risk-averse investors.
- Asked about the most common regrets they might have in 20 years, respondents’ answers were personal rather than financial.
Inflation risk is the most commonly cited financial concern among women, ahead of other serious issues, according to the latest data release from HerMoney and the Alliance for Lifetime Income’s State of Women 2022 study.
Seventy-three percent of female study participants said they were worried about inflation, while 71% worry about illness or disability, 70% about market volatility, 58% about longevity and 43% about unemployment.
The study examined women’s relationship with various financial risks in their lives and their investment portfolios.
It found low levels of inflation preparedness across all income levels.
Even among the highest earners, women whose annual income is more than $200,000, only 44% said they know how to address inflation risk in their portfolios.
“Inflation protection can be boiled down to a few key steps,” Jean Chatzky, HerMoney chief executive and Alliance for Lifetime Income fellow, said in a statement:
- Prioritize paying off any high interest rate debt.
- Delay taking Social Security to increase your monthly take.
- Maintain a diversified investment portfolio for growth, while using annuities or pensions to cover your fixed costs in retirement.
“It’s also a good idea to keep an eye on where your money is going to keep a lid on unnecessary and impulse spending,” Chatzky said.