New year, old fears: Women still struggling with financial concerns
The pandemic has left women investors feeling vulnerable.
Women investors have struggled during the pandemic and are not starting a new year feeling any more confident, according to a study by Nationwide. The firm’s sixth annual Advisor Authority study found 72% of women with at least $100,000 in investable assets say the pandemic has negatively impacted their ability to retire.
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Women were more concerned about a recession in 2020 than they were in 2019 (82% vs 60%), as well as general market decline (74% vs 57%). Seven out of 10 attribute volatility to the pandemic specifically.
“Women are concerned about the impact of the COVID-19 pandemic on their finances and the resulting uncertainty can make planning for the future—and their retirement—more difficult,” Ann Bair, senior vice president of marketing for Nationwide Financial, said in a statement. “For several consecutive years, our Advisor Authority study has revealed the disconnect between women’s growing concerns about their ability to retire and their level of preparation—and the pandemic has taken this to new levels.”
Their concerns have women investors feeling much less optimistic about the personal financial situations than they did in 2019, the survey found. Less than a third said they were optimistic in 2020, down from 56% the prior year. Men were only slightly more positive: 39% versus 53%.
Women are increasingly interested in protecting their assets. Nationwide found that after declining for the past four years, women respondents who said protecting their assets was their top financial concern jumped 10 percentage points to 36%. However, just 60% of women had a plan to do that.
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“While women are acutely aware of the challenges they face, it’s critical that they take steps now to address gaps in their retirement plan, especially as we start a new year,” Bair said.
Not doing so could have serious consequences for women. The survey found:
- 72% of women say the pandemic has shortened how long they will be able to live off their retirement savings.
- 22% say they will have to delay taking retirement income for the next 12 months.
- 24% say they will reduce the amount of their withdrawals over the next 12 months.
Women are seeking out advisors to help them overcome these challenges. Nationwide found 67% of women are working with a financial professional, and a third of those said they did it to feel more confident about their financial futures. More than half of women who didn’t work with an advisor said they preferred to manage their own accounts.
“Now more than ever, women are seeking the help of financial professionals to put a plan into place to protect their assets, manage volatility and save for retirement,” said Lori Hall, director of strategic accounts for Nationwide, said in a statement. “Advisors and financial professionals have an opportunity—and a responsibility—to understand women’s retirement planning needs and help them establish a holistic plan to manage through the current uncertainty while remaining focused on long term goals.”
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