What keeps women up at night?

More and more, women are taking charge of their financial well-being, according to the 2023 Women, Money, and Power Study* from Allianz Life. The number of women who say they are the primary breadwinner in their family has increased. So, too, has the number of women who say they are the Chief Financial Officer of their household.

• 43% say they are the primary breadwinner in their family, up from 34% in 2021
• 49% say they are the CFO of their household, up from 41% in 2021

Yet, fewer women say they feel financially secure. That number is down to 64% from 72% in 2021.

While women are in charge of their finances, just 33% currently have a professional financial advisor. Women, especially the growing number who are managing finances for their household, could greatly benefit from a financial strategy created with the help of a professional.

The study asked women what keeps them up at night. The top three responses offer ways for financial professionals to help those women feel more financially secure: running out of money in retirement, rising costs of health insurance, and the loss of a significant other.

Fear of outliving retirement funds is a big concern. For women, who typically live longer than men, are more likely to be caretakers, and may have less financial capital, this is particularly worrisome. A strong financial strategy can help ease concerns about running out of money – and help your clients actually make their money last their lifetime.

Writing down a financial plan with your clients can help them see all the work done to ensure that they do not run out of money. It will show your clients their guaranteed income from sources like Social Security, pensions, and annuities. That plan can incorporate strategies that help mitigate risks that could cause a retiree to withdraw from their savings faster than anticipated. This means including contingencies for inflation, market downturns, and other risks.

Adding financial products with a level of protection from risks like market downturns can help ease concerns about running out of money. An annuity can offer lifetime income benefits, diversify a financial portfolio, and help improve retirement outcomes. In addition to providing a death benefit, fixed index universal life insurance policies can offer supplemental income for retirees.

Health care costs can eat away at retirement savings. What’s important when creating a retirement strategy is to acknowledge that your clients’ health care needs will likely increase with age. That means more trips to the doctor and more medical bills.

Before retirement, your clients can use a health savings account to save money for future health care costs. Money in HSAs grows tax-deferred, and balances can carry over from one year to the next. Some financial products have benefits that can help pay for medical care or long-term care needs.

Financial professionals can’t be experts on everything. It is wise to have some referrals for clients to help with specific needs like selecting Medicare plans and other health coverage decisions.

A financial professional can help their clients feel financially prepared in the event that they lose their significant other.

A strong written financial strategy can incorporate what to do in the event that one person in the couple passes. It will address how to handle Social Security benefits, tax implications, and other financial factors. That way your clients can grieve without worry about what to do with their finances.

Some financial products have death benefits that could also ease the financial burden after the death of a significant other. For example, a fixed index universal life policy can have a death benefit that is generally income-tax-free to beneficiaries.

*Allianz Life conducted the 2023 Women, Money, and Power Study online in October 2023 with a nationally representative sample of 900 women age 25-75 with an annual household income of $30k+.