Women are significantly more stressed about their personal finances than men, and struggle more than men in almost every area of their financial wellness—including saving for retirement—according to a new survey released May 6.
More than half (56%) of working American women say they are stressed about their personal finances, compared to only 41% of men, according to the new survey of 10,486 U.S. employees conducted by financial wellness solutions provider Salary Finance.
Based on the survey’s data, women are paid, on average, one-third less annually than men ($58,027 vs. $79,517). Given this gulf between salaries for women and men, it’s unsurprising that: women are more likely to run out of money before payday than men (34% vs. 25%); 41% of women report having less than $500 in their checking/savings accounts, compared to only 18% of men; and 63% of women say they do not earn enough to save, compared to 51% of men.
Other key findings in the research include:
- Saving is an uphill battle for many women. Nearly 70% of women feel they do not have enough money for retirement (vs. 50% of men). When it comes to 401k plans:
- 66% of women report understanding how a 401k works (vs. 76% of men)
- 56% of women have a 401k plan (vs. 62% of men)
- Women are more likely than men to choose saving over spending. Despite the limitations in their financial lives, many women are trying to work toward a bright financial future. Thirty-seven percent of women report that they choose to save rather than spend, compared to 32% of men.
- Men are happier and more financially fit than women. On average, the research found men are 24% happier and 37% more financially fit than women. When adjusted for income, these numbers drop to 16% and 12%, respectively, indicating how wide pay disparity is between men and women, and the effect this has on one’s financial wellness.
- Women are at a disadvantage in regard to debt and loan availability. Female employees are a third more likely to be refused a loan than men (40% vs. 30%) and women struggle with higher rates of student loan debt (33% vs. 27%) and medical debt (35% vs. 29%).
- Maternity leave can leave a lasting, negative impact on a woman’s finances. Sixty-three percent of female workers report taking maternity leave; 59% of those said that it impacted their ability to pay bills and 53% had to take on additional debt to make ends meet while taking leave to care for a newborn child.
- The impact of financial stress on women is substantial. Women are 1.3 times more likely than men to suffer from sleepless nights, anxiety and panic attacks due to financial stress.
Employers can provide resources, support
Salary Finance CEO and co-founder Asesh Sarkar said financial stress has significant effects on mental health that impact all aspects of one’s life, including work performance.
Despite the distraction that personal finances can create at work, the Salary Finance study found that 68% of employees feel that their employers care about their financial wellness and 79% trust their employer to keep personal financial information private. This information indicates that there is a powerful role for employers to play in improving the financial wellness of their employees, particularly women.
“Equal pay is just the tip of the iceberg,” Sarkar said. “To achieve true financial equality, we need to provide women with support in their financial lives. It’s imperative that employers take notice of the role they can play in making financial tools and education more accessible for women and examine their approach towards financial wellness benefits.”
While the survey is intended to help employers to better understand how personal money matters affect the day-to-day lives of employees and their performance at work, Salary Finance said it plans to use the results of the survey to inform a more robust study on women and financial wellness later this year.