A higher number of women are questioning whether they can retire, as many grapple with inflation and worries over a potential 2024 recession.
The figures come from Nationwide’s ninth annual Advisor Authority survey, which found that 70% of women surveyed are rethinking their retirement as they consider inflation and a possible economic downturn. According to the data, 43% of single women and 40% of married women cite cost-of-living increases as a long-term challenge to their retirement portfolio. Close to half of advisors who work with women clients also say that the rising cost of living has influenced how to rethink or redefine their retirement planning strategies.
The concerns are causing many to seek the help of a financial advisor, while pushing financial professionals to serve more women clients. Nationwide reports that 90% of advisors are planning to work with more women over the next 12 months—an 11-percentage point increase since August 2023. Moreover, 96% of all financial professionals say they “feel well-equipped” in serving the needs of their women clients.
However, research shows that women continue to feel a disconnect between them and financial professionals. The data found that 47% of single women and 51% of married women believe that their advisor understands their financial targets, with some describing their interactions as one-sided.
“This highlights an opportunity for advisors to take a step back and ensure they are truly listening in their interactions before offering solutions,” said Suzanne Ricklin, vice president of Sales and Retention for Nationwide Retirement Solutions. “Many women investors we surveyed appear to indicate they don’t feel heard by their advisor – and that can be a true differentiator for advisors in advancing relationships with more women clients.”
In considering retirement solutions, 79% of advisors are incorporating annuity products for clients worried about assets against market risk, followed by diversification and non-correlated assets (77%) and liquid alternatives, like mutual funds or exchange-traded funds (58%).
Nationwide’s research includes responses from 346 single women and 726 married women.
SEE ALSO:
- Employees Are Feeling Bleak at Work
- Women Show Greater Confidence Over Economic Environment in 2024
- Women’s Retirement Planning Hit by Confidence, Savings Hurdles
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.