Millennial women, those categorized between the ages of 29 to 44, are beginning to feel the financial effects of caregiving for loved ones while balancing their careers.
The news comes from a Nationwide Advisor Authority study, which found that 55% of Millennial women investors who support children or aging parents have experienced a career or income disruption.
A smaller number of Millennial women are taking financial sacrifices to support their caregiving responsibilities. Twenty-two have taken on a second job to supplement their income while 18% have acquired credit card debt.
Others have faced serious career setbacks—10% who support children or aging parents were terminated or fired from employment due to familial caregiving responsibilities, while 32% have experienced reduced work hours. Seventeen percent say they were forced to decline or delay a promotion.
Their challenges are akin to women of all ages, who each reported facing setbacks and difficult decisions regarding caregiving and finances. Sixty-seven percent of all women surveyed agree that caregiving responsibilities have impacted their careers, and 18% believe the support they provide has prevented them from adequately saving for retirement.
This includes reducing work hours (26%), limiting professional development opportunities (19%), taking extended family or medical leave (18%), switching to part-time positions (13%), or declining or delaying promotions (11%).
Economic uncertainties, like inflation and market volatility, have furthered financial stress for caregivers. Nationwide’s survey found that 73% of women investors are concerned about a U.S. economic recession within the next 12 months. A quarter of women (25%) describe their financial outlook for the year ahead as “pessimistic.”
How each generation processes and tackles these challenges provides an opportunity for financial advisors to step in and guide them through the hurdles, says Nationwide.
Recent conditions of market uncertainty combined with the significant stress that family caregiving responsibilities are putting on women are certainly creating a challenging environment,” said Amelia Dunlap, vice president of Nationwide Retirement Solutions Marketing, in a statement. “But the concerns of women investors are not one-size-fits-all. We’re seeing each generation of women process these challenges in different ways, creating opportunities for financial professionals to better serve clients in these groups.”
Advisors surveyed in Nationwide’s report believe they are “well-positioned” to support women clients as they plan for retirement. Ninety-five percent say they understand the needs of women clients, and 92% plan to grow their list of women clients in the next 12 months.
Nearly all advisors who work with women say their clients either care for children or aging parents. Some strategies these advisors recommend include leveraging tax deductions and credits (47%), or cutting back on non-essential expenses like vacation (45%) or prioritizing retirement savings over other expenses (45%).
“In the current highly volatile market conditions, advisors can help women investors stay focused on long-term strategies to avoid making short-sighted decisions based on near-term economic or caregiving impacts,” added Dunlap. “Regardless of income or savings level, one of the key roles an advisor can play is to help calm investor anxiety by sharing insights on historical market cycles and providing solutions that help address their fears.”
Nationwide’s Advisor Authority study surveyed 610 advisors and financial professionals, and 2,524 investors over the age of 18. Among the investors, there were 1,145 women in total, including 176 Gen Z women, 316 Millennial women, 290 Gen X, and 363 Baby Boomers women.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
