A woman looking concerned over finances.

The Top Four Financial Concerns for Women

by Tami McDonald | Nov 29, 2023 | Financial Wellness

A national study uncovered the top four financial concerns that women face. Learn the survey results and strategies for overcoming these scenarios in our latest article.

Content:

A 2023 study from the National Council on Aging [NCOA] revealed some troubling statistics about women’s perception of their financial security. One troubling fact that the study highlighted was that more than half of surveyed women do not consider themselves financially secure.

When asked to rank their financial concerns, women responded with the following four scenarios they believe will keep them from reaching financial success. By understanding these common concerns, you can take the necessary steps to ensure they don’t derail your financial plan.

#4 Running Out of Money During Retirement

Running out of savings was the fourth most common concern for women – impacting 31% of survey respondents. This worry is a very real possibility for many people, especially women.

There are several reasons why women fear outliving their savings. First, women tend to live longer than men, so their savings need to stretch over a longer timeframe. Additionally, women often have shorter work histories and lower salaries than men, leading to lower Social Security and pension income. Finally, lower wages can mean women save less than men during their working years, even when they save the same percentage of their salaries.

While the fear of running out of money is reasonable, there are ways to alleviate this concern. You can start by understanding the two most common reasons for savings running out – too little savings and poor investment performance. Then, work with an experienced financial advisor to create a financial plan that addresses both of these scenarios.

#3 Not Having Enough Savings to Retire

The third most common financial concern for women was not having enough savings to retire. This issue impacts a third of all surveyed women and 44% of Gen X women. Similar to running out of savings, not having enough money to retire can be overcome with careful planning.

A financial advisor can estimate how your retirement savings will fare in different market conditions and help determine if you have enough money to comfortably cover your retirement expenses. If you don’t have enough, your advisor can help you explore options for increasing savings or reducing expenses.

#2 Cuts to Social Security and Medicare Benefits

Possible cuts to Social Security and Medicare are the second most common concern among surveyed women. This issue impacts 35% of the total respondents and is particularly important to Baby Boomers with 57% of women in that generation ranking it as a top concern.

While cuts to Social Security and Medicare are unlikely, nothing is ever guaranteed. For this reason, it makes sense to have a strong financial plan that can help you adapt if government benefits are reduced.

#1 The Rising Cost of Housing

The cost of housing is the most common concern for women – with 37% of all women and 48% of Millennials ranking it chief among their worries. An increasingly large share of the average woman’s budget is being consumed by these costs, making it more difficult to save for other goals.

To make matters worse, housing costs have risen rapidly since the COVID-19 pandemic and have continued to climb despite lower inflation in other areas. In fact, the Shelter component of the Consumer Price Index increased 7.2% in the past year.

The good news is housing costs are often cyclical – meaning that they tend to correct following a period of growth. For example, the average price of a new construction home peaked at $322,000 in the first quarter of 2007. Two years later, it had fallen to $257,000 – a 20% decline. There is no guarantee that housing costs will follow a similar pattern this time, but historical patterns are hard to ignore.

If you are waiting for housing prices to decline, it can be helpful to focus on the things you can control – like your financial plan. By focusing on your spending and savings goals, you can put yourself in a position to buy a home or upgrade your rental if prices relax. It is also important to remember that home ownership is not right for everyone, and renting can be the right choice in some cases.

The four concerns presented in this article might seem overwhelming, but you don’t have to face them alone. An experienced financial partner can help reduce the anxiety surrounding your financial situation and help you make a plan to approach your future with confidence.

Address Your Financial Concerns with Brookstone Wealth Management

The experienced team at Brookstone Wealth Management can help you confront and overcome your financial concerns. We accomplish this through a comprehensive wealth management program that we call your Financial Fingerprint™.

Your Financial Fingerprint™ is quick to assemble, easy to understand, and simple to modify as your circumstances change. With Financial Fingerprint™ and a partnership with an experienced advisor, you can face your financial worries head on with the confidence and tools that you need to overcome them.