HerMoney and Alliance for Lifetime Income Study: Nearly 3 out of 5 women worry about money several times a month or more
However, this new research shows the more women understand their finances and investments, the less they worry
WASHINGTON, April 28, 2022 — New research examining women’s relationship with money, conducted by HerMoney and the Alliance for Lifetime Income, reveals that nearly three out of five (58%) worry about their finances at least several times a month.
In latest chapter of The State of Women 2022 study, 28% worry at least several times a week and 14% worry every single day. Only 10% say they have their financial stress completely under control.
Even among the highest earners, those who report annual household income above $200,000, still, almost half (48%) worry about their money at least several times per month. However, younger women and single women feel the pressure more than others.
- Millennials (64%) worry more than Gen Xers (60%) who worry more than Boomers (51%).
- Nearly two-thirds (64%) of single women worry about their financial situations at least several times a month compared to 56% who are partnered.
- About one of every five single women (19%) worry about their finances daily compared to just 11% of those in relationships.
The online study was conducted in March 2022 among over 1,000 women who are members of the HerMoney community. They range in age from 18 to 75, most are college educated and employed full time. Two-thirds are married or partnered and two out of five have children under the age of 21.
What are the most pervasive money stressors?
When asked what stresses them out the most about money, one third (34%) of women say competing financial priorities, and nearly the same say not having enough money saved (32%). Younger women are significantly more likely to say not earning enough is their biggest financial stressor. However, once women pass 55, their top concern becomes not having enough saved.
HerMoney and the Alliance also looked specifically at women’s top concerns when it comes to retirement and retirement planning. As women look ahead, financial concerns significantly outweigh concerns about having purpose in retirement.
The two biggest concerns are the impact of healthcare costs (54%) and running out of money (52%), followed by the impact of market volatility on investments (29%) and getting long-term care later in life (28%). Only 13% are concerned about having purpose in retirement.
Working with a financial advisor that you trust can help alleviate concerns about running out of money. While it’s still a major concern, women who have an advisor are significantly less worried about running out of money than those without (44% vs. 58%).
“The bottom line is that the antidote to worry is financial education, the right financial professional and enough protected income to cover basic expenses for as long as you live,” said Jean Statler, CEO of the Alliance for Lifetime Income. “The fact is that women continue to earn less and live longer than men, which means they’ll need more money in their nest egg.
The Alliance’s easy-to-use tools and guides can help women gain a better understanding of their finances and estimate their actual income needs in retirement, which can be a big step in reducing their stress and worry.”
The more you know, the less you worry
HerMoney and the Alliance’s study also points to the key to reducing women’s financial worries – knowledge.
Those who say they know the steps it takes to build wealth, make it last and create a retirement income plan worry significantly less than those who say they don’t. Specifically:
- 80% of women who don’t know what steps to take to build wealth worry several times a month or more compared with just half (50%) of those who do know the steps to take.
- 70% of women who don’t know what steps to take to make their money last through retirement worry at least several times a month compared with 45% of those who do.
- 70% of women who don’t know what steps to take to create a monthly income plan in retirement worry several times a month or more compared with 48% of those who do.
“After years of debating the effectiveness of financial literacy, it’s clear that it has one substantial positive — it can help give us peace of mind so we can stop worrying,” said Jean Chatzky, Alliance for Lifetime Income Fellow and HerMoney CEO. “In the first chapter of the study it was encouraging to find that women are engaging and taking more control of their finances — not just managing the household budget but investing and planning for retirement. The real work now becomes the business of creating a financial life that will serve us not just for years but for decades.”
What will help women stop worrying?
The State of Women in 2022 study also identified the top three things that would alleviate stress about money:
- Achieving a milestone investment amount (43%)
- A pension or investment that provides an income for the rest of my life (40%)
- A 20% bump in salary (40%)
The Alliance and HerMoney have a variety of tools to make these goals a reality.
About Alliance for Lifetime Income
The Alliance for Lifetime Income is a non‐profit 501(c)(6) educational organization based in Washington, D.C., that creates awareness and educates Americans about the value and importance of having protected lifetime income in retirement. Our vision is for a country where no American has to face the prospect of running out of money in retirement. The Alliance provides consumers and financial advisors with educational resources, interactive tools, and actionable research and insights to use in building retirement income strategies and plans. We believe focusing attention and conversations on retirement income that lasts throughout life leads to greater retirement security for millions of Americans.
About HerMoney Media
HerMoney is a new digital media company focused on improving the relationships women have with money. Started by personal finance expert Jean Chatzky, the mission of HerMoney is to level the playing field for financial security, confidence and power with content that is welcoming, thought-provoking, bold, unbiased and always smart. HerMoney delivers the information women need to manage their money so they can focus on their lives. HerMoney Media is the owner of HerMoney.com, as well as DailyWorth.com.
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Learn more about the Chapter 2 findings here: Chapter 2 Research Findings