Recent research paints an encouraging picture of women’s financial engagement: most women are actively saving, feel confident about their finances, and prioritize long-term financial security. The data also reveal some opportunities around confidence, strategies, and obstacles that education, guidance, and employer-sponsored benefits can help close.
For plan sponsors and advisors, it may be worth considering these findings and how plan resources can be deployed to women (and all participants).
Insights into Confidence and Guidance Preferences
According to a Vanguard survey, 70% of women respondents say they feel confident about their savings.
In terms of where they turn to boost their financial knowledge and confidence – and what motivates them to act – Vanguard found women are more likely to reconsider their savings approach when guidance comes from a trusted source (cited by 35% of respondents) or certified financial professional (29%), or when it is paired with additional, broader financial education (30%). This suggests support from credible, trustworthy sources can play a meaningful role in helping women build and act on their financial confidence.
Working Toward Financial Security, but Facing Challenges Along the Way
Nearly half of women surveyed by Vanguard cite financial security as their primary motivation for saving. Transamerica also reports nearly eight in 10 women are pursuing that goal by saving for retirement through an employer plan or on their own.
Yet challenges remain in building their complete financial safety net. The most common self-reported financial regrets among women include:
- Spending on nonessential items (27%)
- Delaying savings toward important goals (18%)
- Prioritizing financial support for friends or family over their own savings (14%)
These findings highlight the competing priorities many women are navigating as they work toward long-term financial security.
How Plan Sponsors and Advisors Can Help
Sponsors and advisors are well positioned to help women build financial confidence and align their savings behaviors with their long-term goals. Effective strategies can include:
- Providing access to financial education resources from established, verifiable sources. Women want to know the guidance they’re getting is reliable. Be clear about where educational information comes from, so they can easily assess and weigh it for themselves.
- Promoting plan features and benefits (e.g., employer match, auto-escalation, and the “set it and forget it” convenience of target date funds) in a way that shows how they can support goals for financial security, a motivating savings factor for more than half of women.
- Tailoring communications and financial wellness programming to reflect the specific goals and priorities women bring to retirement planning. For example, make clear connections between plan features and benefits and how they may help women avoid or manage the types of financial regrets outlined above.
Sources:
https://www.aboutschwab.com/mss/story/why-dont-women-identify-as-investors