Women Identify Themselves as CFOs of Their Households
Even as they struggle with competing costs, women say they are dominating financial responsibilities at home.
Over half of women (53%) in a new study from the Allianz Center for the Future of Retirement report describe themselves as the “chief financial officer” of their household, up from 41% in 2021 and 49% in 2023. This was particularly true for 63% of Millennial women, compared to 46% of Gen X and 45% of Baby Boomer women.
Becoming the CFO of their households has led to increased levels of stress and anxiety, with 52% who report feeling more stressed in general within the last two years. Top concerns include inflation and its impact in reaching financial goals (36%), the rising costs of health insurance (35%), and running out of money in retirement (35%).
“As more women take on the role of Chief Financial Officer for their households, the increased responsibility can feel overwhelming, especially with current economic challenges, such as the rising cost of living and healthcare costs,” says Heidi Vanderkloot, head of FMO distribution at Allianz Life. “While the economic factors are out of your control, you can take control and address the risk to your long-term financial outlook by incorporating risk management strategies to ensure your money lasts your lifetime.”
Others believe the newfound role has helped them gain a sense of financial security. Married women were most likely to say they feel financially secure (69%), while 55% of single women report feeling assured with finances. Close to half (47%) of divorced women and 47% of widowed women say the same.
Still, despite the confidence, the report shows a trending decline with conviction in long-term financial goals like retirement. According to Allianz Life, a smaller number of women feel confident about current retirement plans (46%) than in 2023 (52%), including single (32%) and divorced (34%) women.
Single women were also less likely to work with a financial professional (15%) compared to women who are married (36%), widowed (33%), or divorced (29%).
Retirement, along with other factors like emergency savings, have long been some of the leading financial concerns for women. Yet the pressure to shoulder day-to-day financial costs and emergency expenses has forced some to delay or reduce contributing to retirement.
Allianz Life notes that working with a financial professional could lead to better preparation tactics and open room for savings in the short- and long-term.
“The guidance of a financial professional can make a pivotal difference in your financial confidence,” says Vanderkloot. “Many may feel a lack of confidence because they haven’t created a financial strategy that outlines their financial goals and the steps to achieve them. With the right support and financial strategies in place, women can more confidently navigate financial challenges and secure their futures.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.