We know that the COVID-19 pandemic has negatively impacted women’s personal finances, but just how bad was the damage?
A new survey by Edelman Financial Engines, one of the nation’s largest independent financial planning and investment management firms, revealed that 71% of women say the pandemic impacted their finances and one in three expect it could take a year or more to recover.
Women of color expect they won’t recover for six years on average.
Three in five (61%) women experienced significant adverse financial events during the pandemic, including taking money from savings or investments (26%), losing a job or getting a pay cut (19%), or incurring medical expenses (18%).
Half (51%) of women are more worried than they were before the pandemic and 26% are much more worried about achieving financial milestones. Women (37%) are more likely than men (29%) to be concerned about increasing emergency savings.
“Our survey highlights the challenges women are facing due to the pandemic,” Ric Edelman, founder of Edelman Financial Engines, said in a statement. “Seeking advice from an experienced financial advisor can help women improve their situation as we move past the pandemic.”
The survey revealed, however, that relatively few women seek advice from financial advisors. In fact, more women have received advice from their parents (36%) than a financial advisor (27%).
Edelman and HerMoney Founder Jean Chatzky are presenting a free webinar “The Truth About Women & Money” on Tuesday, March 23 at 3 pm ET and 8 pm ET.
“Once we clear the decks of the aftermath of this pandemic, and really start putting more money in retirement accounts, savings accounts, and emergency savings accounts, I’m confident women can flip the script on all of this,” Chatzky said. “Women are going to make this work in our favor, and we need qualified financial advisors by our sides to help us lay out a road map to make this happen. Our upcoming webinar showcases some of these solutions.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
