Women have become more confident in managing and engaging with their finances since the pandemic, according to new research by U.S. Bank.
The Women & Wealth Insights study reveals that the pandemic, which affected the work/life balance for women in particular, has significantly changed women’s attitude toward areas such as financial engagement, focus on retirement, general financial strength.
In March 2020, when U.S. Bank released its first women and wealth survey, 41% of baby boomers, 50% of Gen X and 56% of millennials and Gen Z said they were confident in their ability to manage their finances. Two years later, those numbers have jumped to 46% of boomers, 53% of Gen X and 71% of millennials and Gen Z.
The online survey, which included 3,024 people—1,517 women and 1,507 men—with at least $25,000 in investable assets, showed that while women have become more positive about managing their finances, it is the younger generation overall that is most optimistic, and that includes both men and women.
“The new research points to a new generation of female investors: Women who have more money saved than any other generation of women are overwhelmingly in charge of many financial decisions and associate financial planning with feelings of confidence, competitiveness and joy,” the study noted.
The research also showed that women have closed the gap with men in their confidence to fund future financial needs. Today, 36% of women and 37% of men said they are confident. That compares to 23% of women and 34% of men in 2020 who said they were financially prepared to cover their future financial needs, the survey said.
Women also narrowed the gap in their confidence on whether they will be able to afford retirement. In 2020, 48% of women and 61% of men said they were confident in doing so. That gap of 23 points has shrunk five points, with 57% of women now saying they are confident about retirement. Gen Z led the way, with 65% women and 71% men indicating they will be able to fund retirement.
“The most positive insight from this second Women & Wealth survey is the progress younger women have made in engaging with and managing their finances,” Gunjan Kedia, vice chair of Wealth Management and Investment Services at U.S. Bank, said in a statement.
Kedia, however, noted that the survey also “indicates a need for financial advisors to support Gen X women, who are the most vulnerable generation of women in terms of financial preparedness.” In comparison to the 65% of Gen Z who believe they will retire on time, 48% of Gen X and 55% of boomer feel the same way.
While the survey found that millennial and Gen Z women and men are more likely to use online courses, podcasts and social media to improve their financial literacy, it also found that women of all generations are open to using the services of financial advisors.
It noted that millennial and Gen Z women and men prioritize working with advisors who have strong workplace equality and diversity ratings, support gender equality in the workplace, and support international human rights, more so that other generations. Boomer women (88%) and men (81%) highly value advisors who take the time to listen to them, the survey showed.