Financial Planning Isn’t Just a Man’s Game Anymore

ARA (ARA) – Gone are the days when wives could simply leave their family’s financial planning to their husbands. In this fast-paced world, change is the norm rather than the exception.

Eileen Manning, 42, of Minneapolis, Minn., learned that the hard way. The day she turned 39, her husband died of a heart attack. “I never expected to become a widow at 39, but it happened and there was nothing I could do about it,” she said. After her husband’s death, not only did she have to pick up the pieces emotionally, she also had to figure out which bills had to be paid, how much money she had in savings and how she was going to prepare for her financial future -- alone.

“It took me at least six months to figure it all out,” she noted. “From trying to locate where our boat had been stored, to understanding what benefits I had coming, it was overwhelming. I went from feeling safe and secure, to suddenly being uncertain about the future.” Manning knew she had investments she could use to stabilize her financial situation, but her inactivity of the past made it a very difficult process.

A survey conducted by Prudential Financial late last year (1) found that while a significant number of Baby Boom women are becoming more financially aware, too few are taking the action necessary to secure their financial futures. “I wouldn’t have taken the steps I did had I not been forced to,” said Manning.

And she’s in good company. Just 14 percent of those polled said they had engaged in some form of detailed financial planning, and while 84 percent believe securing long-term care is important, just 13 percent said they owned long-term care insurance.

In May of this year, Prudential followed up on the 2002 study when it released the results of a retirement planning survey that polled America’s pre-retirees -- those between the ages of 45 and 60. (2) The results illustrate an alarming difference between men and women that should be an even greater wake-up call for women pre-retirees.

Specifically, the 2003 study found:

* 73 percent of men are confident their investments are on the right track, compared to just 57 percent of women.

* Just 48 percent of women are confident of their ability to achieve their retirement goals, compared to 7 out of 10 of their male counterparts.

* 47 percent of women polled are worried about having to postpone retirement, while just 32 percent of men share that sentiment.

* 56 percent of women feel they have a good understanding of asset allocation, while 71 percent of men do.

* Two-thirds of men are happy with their current level of household savings, compared to 52 percent of women.

The study also revealed that the level of financial health of many women pre-retirees is a cause for great concern.

“We found that 39 percent of women polled are considered to be in ‘frail’ financial health, having yet to take many of the necessary steps to plan, monitor and seek advice on growing and protecting their wealth,” said Priscilla Myers, senior vice president and individual insurance chief marketing officer for Prudential.

As a follow-up to the study findings, Prudential is continuing its educational strategy for local markets designed to help raise the level of women’s financial health.

“The fact that more than a third of women pre-retirees are in ‘frail’ financial health is alarming,” added Myers. “By providing our financial planners the tools needed to reach women, we hope to educate, empower and encourage them to improve their financial health and secure the comfortable retirement they deserve.”

For more information, including an online copy of Prudential’s 2002 study on the financial behaviors among women, visit www.prudential.com.

Courtesy of ARA Content





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Courtesy of ARA Content