More Women Report Prioritizing Day-to-Day Expenses Over Their Financial Future Because of the Pandemic
March 08 2021 - 9:00AM
Business Wire
Men Are More Focused on Strategic Long-Term
Financial Issues, Reinforcing the Need for Increased Financial
Advice and Education Among Women
One-third of women say they are struggling to make ends meet,
according to new research from Lincoln Financial Group (NYSE: LNC).
The company’s January 2021 Consumer Sentiment Tracker found that
while men are more focused on financial issues like the impact of
taxes, stock market volatility and long-term-care expenses, women
report the pandemic has resulted in a greater focus on their
day-to-day finances (71%) rather than planning for the future.
Mastering the Financial Balancing Act
The events of the last year have caused a change in mindset for
all Americans. However, the Lincoln study found the COVID-19 crisis
has hit women harder financially with more frequent job impacts
than men (35% vs. 28%), driving their top concerns of covering
day-to-day expenses (34%) and a lack of emergency savings (45%). As
men are taking on more strategic long-term financial actions like
meeting with a financial advisor, women are enduring financial
hardships in order to make necessary and immediate financial
decisions. They are delaying major purchases like cars and homes
(24%) and drawing from their emergency funds (21%).
“The research demonstrates that the pandemic has accentuated the
gender income gap,” said Kristen Phillips, senior vice president,
Corporate Marketing, Communications and Strategy. “Millions of
women left the workforce in the last year not only due to job loss,
but because of caregiving responsibilities at home. As a result,
many are living paycheck-to-paycheck with minimal savings, unsure
of how to prioritize retirement and their long-term financial
outlook too. As an industry, we have an opportunity to help provide
women with the tools and knowledge that will enable them to create
more positive outcomes.”
Strengthening Financial Confidence
One area where women could use a boost is feeling more empowered
about their financial future. Lincoln’s research found that women
are more than twice as likely to be unfamiliar with financial
planning and investments than men, who are increasingly reading and
learning about financial markets and investing. Men are also
currently working with a financial professional in greater numbers
than women (42% vs. 26%). The WISE Group (Women Inspiring,
Supporting and Education) has been striving to better support the
unique needs of female financial advisors and their clients since
it was formed by Lincoln Financial Network—the retail wealth
management affiliate of Lincoln Financial Group—in 2015. Anita
Grossman, president and founder of Grossman Financial Planning
Group and a representative of Lincoln Financial Advisors, is a WISE
member.
“It’s so important for women to feel confident in making
financial decisions – that’s why one of our top objectives at The
WISE Group is educating female clients on the importance of
comprehensive financial planning, so they are better prepared to
take charge of their financial lives,” said Grossman. “Women tend
to approach personal finance a little differently, which is why we
develop educational materials specifically for women, as well as
make them available to our male counterparts. We are committed to
ensuring all our advisors have the resources to best serve the
wider female marketplace.”
Helping Women Take Action
While there is still more to be done to close the financial
gender gap, the good news is that 70% of women want to better
protect themselves and their families financially. As part of
Lincoln’s ongoing effort to raise financial awareness among women,
Grossman recommends these three tips to help achieve that goal:
- Create a financial plan. Consider hiring a financial
advisor who specializes in financial planning or maximize online
budgeting tools, calculators and other resources to get an accurate
financial snapshot. Be sure to put goals in writing. Leverage any
employer-sponsored financial wellness programs to create a
personalized action plan that addresses issues like building an
emergency fund and paying down debt. Tap into employer-sponsored
benefits including voluntary solutions like accident and critical
illness insurance, as well as retirement plans. Women have longer
life expectancies than men. Plan for that longevity. Save more for
retirement now to fund extra years of retirement later.
- Take financial ownership. Review retirement and other
account balances to determine areas of progress and any parts
needing improvement. Make a plan to fill any gaps and determine
income projections. Women should initiate regular conversations
with loved ones to discuss retirement and their financial future.
Tap into educational materials and conduct online research to
proactively understand the benefits of various financial products
and solutions.
- Meet with a financial professional. Women, as well as
men, benefit from personalized guidance. A financial advisor can
help women take a holistic view of their finances, from the
accumulation period to and through the distribution phase, while
considering asset protection strategies. They can help women think
through “what-if scenarios” because life can bring unexpected
situations.
“Female advisors have the power to motivate and support each
other, then share that contagious empowerment with the women who
seek our advice and guidance,” said Grossman. “It is so rewarding
to watch our female clients light up when they experience the
positive outcomes resulting from their financial vision.”
Visit www.lincolnfinancial.com for more tools, resources and
other tips on how to protect the ones you love the most.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help
people take charge of their financial lives with confidence and
optimism. Today, more than 17 million customers trust our
retirement, insurance and wealth protection expertise to help
address their lifestyle, savings and income goals, and guard
against long-term care expenses. Headquartered in Radnor,
Pennsylvania, Lincoln Financial Group is the marketing name for
Lincoln National Corporation (NYSE:LNC) and its affiliates. The
company had $303 billion in end-of-period account values as of
December 31, 2020. Lincoln Financial Group is a committed corporate
citizen included on major sustainability indices including the Dow
Jones Sustainability Index North America and FTSE4Good. Dedicated
to diversity and inclusion, we earned perfect 100 percent scores on
the Corporate Equality Index and the Disability Equality Index, and
rank among Forbes’ World’s Best Employers, Best Large Employers,
Best Employers for Diversity, and Best Employers for Women, and
Newsweek’s Most Responsible Companies. Learn more at:
www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn,
and Instagram. Sign up for email alerts at
http://newsroom.lfg.com.
Anita Grossman is a registered representative of, and Grossman
Financial Planning Group is a marketing name for registered
representatives of, Lincoln Financial Advisors. Securities and
investment advisory services offered through Lincoln Financial
Advisors Corp., a broker-dealer and registered investment advisor,
member SIPC.
LCN-3475409-030221
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version on businesswire.com: https://www.businesswire.com/news/home/20210308005521/en/
Media: Holly Fair Lincoln
Financial Group 484-583-1632 Holly.fair@lfg.com
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