Financial Trends Among Women
Written by Marlo .
Prudential has released a study tracking the financial behavior of women over a ten-year period. What are the trends? What are strengths, changes, and challenges faced by women and expressed in their behaviors? What unique challenges do women face as a part of their financial experience? These are a few of the many questions explored in the report.
The report suggests that 95% of the women surveyed were financial decision makers and 86% of married women were the primary decision makers in their household.
Yet, fewer than two out of ten felt confident in that role and relied on non-experts for advice. Since 2000, insurance products and benefits, such as annuities or long-term care insurance are better understood by these decision makers, but not as well understood as they should be for the primary financial decision makers–according to the survey.
“While the need for a trusted financial partner has never been greater, women are relying on informal personal networks for advice,” said Judy Rice, president of Prudential Investments, Prudential’s proprietary mutual fund business. “Building a financial plan requires expert assistance, so it is important that financial firms work hard to build trust and do a better job of encouraging women to find the time to establish realistic plans to meet their specific needs.”
From the business insurance standpoint, the ability to offer benefits that encourage retention and loyalty assumes the employee understands the value of the benefit to their family. And this knowledge is growing among female professionals: in 2004, 47% acknowledged the importance of workplace retirement plans; today, 72% acknowledge the importance of such a benefit.
Finally, when asked where the primary source of information about financial products came from? 64% said their spouses. And I will assume that 64% of the respondents are not married to financial professionals.