Women investors take a more proactive approach to financial planning

Columbus, Ohio, March 3, 2022 /PRNewswire/ — The onset of the COVID-19 pandemic had a significant impact on how women viewed their finances. While one would assume apprehension would be the dominant sentiment after a tumultuous few years, the National Retirement Institute’s® Advisor authority study found that female investors (with investable assets of $100,000 or more who are the primary or shared decision-makers regarding long-term financial planning for themselves or their family) were significantly more optimistic about their financial outlook in 2021 compared to 2020 (49% vs. 32%). With more experience in the “new normal” created by the pandemic, women have become more proactive with their finances.

In fact, 72% of women investors have a strategy in place to protect themselves from saving too long, 83% have a strategy in place to generate guaranteed income in retirement and 59% have a strategy in place to help protect assets against market risk. Additionally, due to direct experience of how market volatility can have a significant impact on their portfolio, 68% of women investors will revise their investment strategy more cautiously, and 73% will revise their strategy more cautiously. investment to be managed more actively.

“Women investors do not take their experience of the COVID-19 pandemic or other financial crises lightly,” said Anne Bair, SVP of Marketing for Nationwide Financial. “After experiencing the upheaval of these events, from market volatility to juggling childcare while remote learning, women are more proactive in thinking and planning for their future.”

Act, but proceed with caution

About half of female investors identified the 2008 crash (50%) and the COVID-19 recession (48%) as two major financial crises that impacted their approach to finances and investments. Profound events like these have led many female investors to start thinking more about their financial future, adjusting their approach to managing their personal finances by taking steps such as proactively starting a “day of rain” or an emergency fund (23%) or creating and following a budget (21%).

Women have already demonstrated a greater likelihood than men of making better long-term decisions in the face of financial crises. For example, fewer female investors (8%) than male investors (15%) liquidated qualified retirement savings plan assets (e.g., 401(k), 403(b), 457, IRA ) to cover their financial obligations in response to the crises that had a profound impact on them – a smart move given the long-term consequences that can arise when you take money out of your retirement savings.

Lessons learned from previous crises will help women cope with future events. With the COVID-19 recession still fresh on everyone’s minds, 16% of women expect to experience two more financial crises in their lifetime. These lessons could benefit women in the short term, as 70% are worried about an economic recession in the United States over the next 12 months and 56% expect market volatility to increase over the next 12 months.

Women investors seek solutions to boost their financial confidence

Two-thirds of female investors work with an advisor (64%) and the main reason they do so is to feel more confident about their financial future (40%).

When female investors were asked what would make them more likely to work with an advisor or finance professional, or motivate them to work with an advisor or finance professional, an advisor’s experience (41% ) was the most common factor. Ninety-two percent of those who currently work with an advisor or financial professional say it helps them feel more confident that they can make the right investment decisions, even during an extreme financial crisis.

“Women have distinct needs and perspectives that may be different from the traditional male clientele that forms the core of many financial services practices. When advisors recognize this and adapt their strategies to meet women where they are, they can build trusting relationships and help their clients have a more secure financial future,” said Lori RoomDirector of Strategic Accounts for Nationwide Financial.

To avoid depleting their savings, women rely on solutions such as Social Security (64%), dividend-paying stocks (36%) and defined benefit plans/pensions (33%). However, finance professionals can help them diversify beyond these mainstream solutions to find other ways to meet their long-term retirement needs, especially with the cloudy future of income sources. retirement such as social security and pensions.

“Advisors and financial professionals can help women understand what they can expect from the strategies they currently have in place and think about other factors that may affect retirement income, especially when they perceive social security, health care costs, inflation, market volatility and taxes,” says Hall. “It can help identify gaps in their plan that can be addressed through new solutions.”

Currently, two in five female investors (41%) are likely to choose an annuity to protect against market risk as part of their holistic financial plans and about half of female investors (52%) are likely to choose an annuity to protect against the depletion of savings.

Nationwide has created this resource to help advisors and financial professionals establish and build trusting relationships with clients.

View an infographic for additional information about the data from this survey.

The seventh edition of Nationwide Advisor authority study by the National Retirement Institute® explores the critical issues facing advisors, finance professionals, and individual investors, and the innovative techniques they need to succeed in today’s complex marketplace. This is the fourth in a series of ongoing releases from the Seventh Annual Study.

On Advisor Authority: Methodology
The seventh edition Advisory Authority The survey was conducted online in United States by The Harris Poll on behalf of Nationwide of 22nd of JulyAugust 17, 2021 from 1,632 advisors and financial professionals and 839 investors, aged 18 and over. Among the 839 investors, there were 363 women, 475 men. Investors are weighted where necessary by age, gender, race/ethnicity, region, education, income, marital status, household size, assets to be invested and the propensity to be online to bring them into line with their actual proportions in the population. Respondents to this survey were selected from those who agreed to participate in Harris Poll surveys. Since the sample is based on those who were invited to participate in the Harris Poll online research, no estimate of theoretical sampling error can be calculated.

About the Harris Poll
The Harris Poll is one of the oldest surveys in the United States that has tracked public opinion, motivations and social sentiment since 1963 and is now part of Harris Insights & Analytics, a global consulting and research firm market that provides social intelligence for times of transformation. We work with clients in three main areas: building 21st century corporate reputation, developing brand strategy and performance tracking, and earning organic media through PR research. Our mission is to provide information and advice to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohiois one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by AM Best and Standard & Poor’s. An industry leader in customer-focused innovation, Nationwide offers a full suite of insurance products and financial services, including auto, business, home, farm and life insurance; public and private sector pension plans, annuities and mutual funds; excess & excess, specialty and surety; animal, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, Ohio. The National Retirement Institute is a division of the NISC.

Nationwide Nationwide is on your side, Nationwide N and Eagle and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide.

Contact: Meghan Busch
The Bliss Group
[email protected]

Mike Switzerland
At national scale
[email protected]


SOURCE Nationwide

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