Financially Empowered Women Are on the Rise

They make major investment decisions, understand investment products and are interested in learning about financial matters. An Allianz Life study examines women, money and power.

Since the financial meltdown of 2008, women have begun relating differently to money, according to Allianz Life Insurance Company of North America. The “2013 Women, Money and Power” study shows that a new type of woman has emerged, more empowered and informed about finance—and more likely to seek the advice of a financial professional. 

Allianz named this woman the Woman of Influence, and said that one in five women fits this profile based on criteria that include activity in major investment decisions, good understanding of financial products and interest in learning about financial matters.

As a result of this increased level of engagement, the Woman of Influence is more likely to feel financially secure (79% agreed versus 62% of all women surveyed) and more likely to feel confident in her ability to spend, save and invest wisely than the average woman (87% agreed versus 69% of all women surveyed). 

“The compelling thing about the Woman of Influence is she doesn’t necessarily fit the typical Power Woman profile of someone with a six-figure salary and an MBA,” said Katie Libbe, vice president of consumer insights for Allianz Life. “The Woman of Influence can just as easily be a stay-at-home mom who is fully engaged in household finances and committed to actively managing her family’s financial future.” 

The 2013 study also found Women of Influence have a much better idea about their financial future, including their prospects for retirement. Forty-seven percent of Women of Influence began saving while in their 20s and they are much more likely to have started saving for retirement than the average respondent – with only 1% of Women of Influence saying they have not begun saving versus 12% of all women surveyed.

Higher Earning Power 

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

As a result of their financial savvy and empowerment, Women of Influence tend to have more earning power (average of $57,000 per year versus $48,000 per year for all women surveyed), a higher incidence of post-graduate education attained (26% have completed a graduate degree versus 20% for all women surveyed) and more success in the workplace (they are 50% more likely to be a business owner and 80% more likely to be at the director or VP level within their company than the average woman).

Among the significant findings of the study is the new level of financial empowerment for women across all age ranges and relationship status categories. Other findings from the study are:

 

  • 57% say they have more earning power than ever before;
  • Six in ten say they are the primary breadwinner in their household;
  • More than half (54%) of all women also describe themselves as chief financial officer (CFO) of their household;
  • 75% say they can’t rely on their husbands to handle the investing;
  • Women of Influence are likely to believe that becoming more financially knowledgeable has made a real difference in the quality of their life (90% agreed versus 67% of all women surveyed);
  • They are less likely to feel that poor management of their finances created real problems for them (23% agreed versus 30% of all women surveyed); and
  • They are more confident about seeking financial information (46% said they have “no problem knowing what to ask or where to go,” versus 35% of all women surveyed).

 

Work with Financial Professionals 

One reason Women of Influence may have more confidence is the higher level of involvement with financial professionals. More than half of Women of Influence (52%) say they work with financial professionals (versus 38% of all women surveyed), and are more likely to view their professional as a “go to” source for information on how to save, spend and invest (45% agreed versus 31% of all women surveyed).

This increased engagement with a financial professional has been beneficial for the Woman of Influence in a number of ways. Because of this relationship, Women of Influence are:

  • More likely to feel confident and prepared for their financial future (86% agreed versus 77% of all women surveyed);
  • More likely to feel they earn a better return on their money (83% agreed versus 75% of all women surveyed);
  • More likely to say they understand financial terminology and issues better (80% agreed versus 65% of all women surveyed); and
  • More likely to be active in financial planning (85% agreed versus 68% of all women surveyed).

However, despite higher earning power and greater financial engagement, the Woman of Influence still shares concerns about running out of money in retirement. Forty-six percent of these women noted they sometimes worry about losing all of their money and becoming a “bag lady,” only slightly below the response from all women (49%).

“It’s inspiring to see a growing number of women fit this empowered profile, and we encourage women to evaluate their own relationship with their finances to determine where they stand and what steps they need to take to become more confident with financial and retirement planning,” Libbe said. “It’s important to remember the Woman of Influence doesn’t have to be career-focused and high-earning, although the study found that many do have more professional success.”

The “2013 Allianz Life Women, Money and Power Study” was conducted by Larson Research + Strategy in December, with more than 2,000 women, ages 25 to 75, with a minimum household income of $30,000 a year.

Pensionmark Offers Small Business Retirement Plan Solution

Pensionmark Retirement Group announced a new retirement plan solution for small businesses.

The service will offer the benefits of a cost-effective retirement plan with 3(38) investment fiduciary services, 3(21) named non-investment fiduciary services and administrative outsourcing, the company said. The Retirement Plan Exchange is designed so small-market retirement plan sponsors can enjoy the protections and convenience of fiduciary support along with total retirement outsourcing in a cost-efficient retirement plan.

The advantages of participating in it include:

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

  • Cost-efficiency. Participating employers enjoy advantages through asset pooling, fee reductions as plan assets increase, and reduced audit fees for participating employers with over 100 eligible employees.
  • Comprehensive professional fiduciary platform. Employers who participate in the Retirement Plan Exchange can enjoy the benefits, guidance and protections offered by the professional services of the 3(38) investment fiduciary, and the 3(21) named non-investment fiduciary.
  • Administrative ease. Small businesses will now be able to take advantage of a retirement plan solution that allows retirement outsourcing by delegating duties and certain responsibilities to the 3(16) plan administrator, and the third party administrator. Every participating employer in the Retirement Plan Exchange will have access to a retirement specialist, financial adviser and investment analytics provided by Pensionmark.
  • Plan design flexibility. Plan sponsors can choose from many plan design provisions that meet their unique needs, while outsourcing tasks such as managing the plan document, preparing or signing the plan’s Form 5500, and ensuring that legal notices are disseminated to employees.
  • Automatic enrollment and deferral increase. To help plan participants save for retirement, the Retirement Plan Exchange offers default automatic enrollment at a 6% initial contribution rate with a 2% automatic increase in each of the next two years. Additionally, a Roth 401(k) provision will be automatically available to all participants who desire to save in an after-tax environment.

 

“This innovative retirement plan allows employers a strategy that has virtually the same employer involvement as a simple payroll-deducted IRA program, but with the benefits of a comprehensive 401k plan,” said Troy Hammond, president and CEO of Pensionmark.

More information is at www.pensionmark.com.

«