Women are less prepared for retirement than men and are average-risk investors, says a new Mercer survey.
Mercer’s "Inside Employees’ Minds" financial wellness survey found the respondents had little knowledge of investments. Women felt alienated by financial jargon and were less likely to have a financial planner, the survey said.
One in five women worried more than 20 hours a month while at work about expenses and other financial obligations, the survey indicated. The highest financial concerns for women included long-term care, health-care expenses and dipping into their own finances to act as a caregiver to a spouse or parent.
Based on the results, 41 percent of women felt financially secure, compared with 62 percent of men who felt financially secure. The survey found women had less "financial courage" than men. Mercer used a "financial courage" index based on an individual’s attitude toward finance, financial planning preferences and control over investments.
When employees felt confident with their financial obligations, they were healthier and more engaged at work, the study found. The survey’s mission aimed at improving women’s financial wellness and how employers can help employees gain confidence with personal financial matters.
Employers can build employees' financial wellness by establishing leave policies that address maternity and caregiving needs and offering a 401(k) plan, the study suggested.
Financial wellness was measured by an individual’s perceived financial state on monthly expenses, absorbing financial shock due to an emergency and achieving financial goals such as buying a house.
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