Women have made great strides in their financial savings and wellness, but financial advisors can better help them improve their knowledge with long-term savings.
New research from Fidelity Investments finds more women are attuned to their financial health—the investment institution added 48% more new women customers in 2023 compared to 2019, including 99% Gen Z women customers and 48% Millennial women clients.
“The first step toward taking action is being aware of the factors that make women’s financial planning unique.”
Joanna Rotenberg, Fidelity Investments
The surge isn’t necessarily surprising, Fidelity observes, as more women have become empowered to take charge of their financial health in past years. According to the findings, 60% of women are actively investing in the stock market today. Furthermore, 51% of women who invest in the market say they “typically stay the course” on their investments when the market drops, compared to 43% of men.
The number of women preparing for retirement is slowly but steadily rising as well, Fidelity reports, as 68% of women report saving for retirement in 2023, compared to 66% in 2019.
“Women hold incredible spending power, and it’s encouraging to see more and more taking control of their finances,” said Joanna Rotenberg, president of Personal Investing at Fidelity Investments, in a statement. “The first step toward taking action is being aware of the factors that make women’s financial planning unique.”
Despite the developments, women investors say they still need help understanding the ins and outs of retirement. Fifty-two percent know how to invest their savings to prepare for retirement, 59% understand when to take Social Security to receive the highest benefit, and 56% know how to pay for healthcare expenses in retirement.
Unsurprisingly, women continue to face the same stressors that have disproportionately impacted their finances and overall wellness in the past, including:
- Thinking I should be doing more with my finances than I am (40%)
- Saving enough to retire (39%)
- Paying off debt (37%)
- Tackling the cost of health care in retirement (29%)
- Knowing how to invest my savings to reach my financial goals (24%)
Other factors that can make financial planning difficult include caregiving and extended retirement years, and not to mention the healthcare costs associated with both those issues.
As women look to professionals, more are seeking guidance to help plan for these factors. Fidelity data saw a 19% increase in women reaching out for guidance since 2019, compared to a 16% rise among men.
Fidelity fielded responses from 2,020 adults, including 994 men and 1,002 women.
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