Women’s financial health is vitally important to a workforce. However, women’s financial health is at a five-year low. That’s according to a new survey out from Ellevest, a financial planning and investment company. Inflation, lower consumer confidence, and the recent overturn of Roe v. Wade are all weighing on women, putting a negative spin on their financial perspective.
Money is the number one source of stress for women, according to Dr. Kate Sullivan, Ellevest Head Data Scientist, who was quoted in a recent BenefitsPro article that cited the Ellevest study. The Covid-19 pandemic exacerbated the deterioration of women’s financial health, Dr. Sullivan observed, but it bounced back quickly due to improvements in the labor market and access to paid family leave. Women left the workforce in droves during the pandemic, but inflation and restricted abortion rights are impacting their financial health even as they return to work.
Age also plays a role in women’s financial concerns. Older women worried more about inflation and the potential of an impending recession, while younger women prioritized reproductive rights and job security, according to the Ellevest report. These concerns led to increased anxiety about money. The study found that 43% of women said they actively worry about money at least once a day, compared to 36% of men. Additionally, 59% of women worry about money once a week, vs. 55% of men, Ellevest found. The overturn of Roe vs. Wade prompted more than half of women to have a change in their financial mindset.
Other findings from the Ellevest survey include:
- More women are prioritizing financial wellness than before, with 42% of respondents ranking it as important in 2022 vs. only 14% in 2021
- 63% of women have reduced their day-to-day spending in the face of economic pressures
- Amongst women who were already investing in their retirement, 75% have continued to do so despite the changing economic situation
- Fewer women (38%) are concerned about market volatility than men (58%)
Women make up a majority of the workforce, and in many American households, they are increasingly becoming financial decision-makers. Employers have an opportunity to help women feel more financially secure by beefing up their financial wellness programs to target concerns and priorities unique to this demographic, as well as encouraging them to seek professional financial advice to help them feel more confident as they plan for the future. The data shows that women are committed to building wealth and security for retirement. Continuing to focus on women’s financial health includes finding proactive ways to entice them to participate in workplace retirement plans. As for everyone, auto enrollment, auto escalation, and employer matching contributions would also be beneficial.
