Female Investors Become More Proactive in Financial Planning

Lessons learned from previous crises will help women face future events. Sixteen percent of women in the survey said they expect to live through two more financial crises in their lifetime. 

These lessons may benefit women in the near term as well. Seventy percent expressed concern about a recession in the next 12 months, and 56% anticipate that market volatility will increase over the next 12 months.

Solutions to Build Financial Confidence

Two-thirds of female investors reported that they work with an advisor, the main reason being to feel more confident in their financial future. 

Asked what would make them more likely to work with, or had influenced them to work with, an advisor or financial professional, 41% cited an advisor’s experience. 

Nine in 10 of those who work with an advisor or financial professional said doing so helps them feel more confident they can make the right investment decisions, even in an extreme financial crisis.

“Women have distinct needs and perspectives that may be different from the traditional male client base that makes up the bulk of many financial services practices,” Lori Hall, director of strategic accounts for Nationwide Financial, said in the statement. 

“When advisors recognize this and tailor their strategies to meet women where they are, they can build long-lasting, trusting relationships, and help their female clients achieve a more secure financial future.”  

To help protect themselves from outliving their savings, 64% of women surveyed said they rely on Social Security, 36% on dividend-yielding stocks and 33% on defined benefit plans/pensions. 

Hall said advisors and financial professionals can not only help women understand what to expect from strategies they have in place, but also think about factors that may affect retirement income, such as health care costs, inflation, market volatility and taxes.

“This can help identify gaps in their plan that may be addressed through new solutions,” she said.

As it stands, 41% of female investors are likely to choose an annuity to protect themselves against risks as part of their holistic financial plans, and 52% are likely to choose an annuity to protect against outliving savings.