How Women Can Boost Their Financial Confidence
Key takeaways
A new survey finds that women say they feel uncertain about their finances.
Working with a trusted advisor can help you build a plan that can make you feel more empowered.
Providing this peace of mind is how financial planning helps you worry less and live more confidently.
A new survey from Northwestern Mutual seeks to shed light on how women feel about their finances, particularly when it comes to retirement planning. According to the survey, just 36 percent of women say they know how much money they will need to retire comfortably; this presents an exciting opportunity for growth and empowerment.
Different generations of women have distinct perspectives on their retirement goals, with Gen X women having the greatest room for improvement. This diversity in outlook underscores why having a tailored financial strategy that takes each individual’s journey into account is so important.
In a specific dollar amount, how much do you think you will need to save in order to retire comfortably?
Gen Z women:
$1.2 million
Millennial women:
$1.5 million
Gen X women:
$2.1 million
Boomers+ women:
$902,000
Women typically do face specific challenges in saving for retirement: women live longer, are more likely to have gaps in their savings years and they tend to have higher health care costs. And, according to the National Institute on Retirement Security, women’s average retirement income is about 80 percent of what men receive.
“Now is the time for Gen X women to convert their anxiety into confidence with planning,” said Kamilah Williams-Kemp, chief product officer at Northwestern Mutual. “It can be especially stressful to see retirement out on the horizon and not feel prepared. Their anxiety and experience should also represent a wakeup call for younger women who still have time to plan and save. There’s never been a better time than now to get started on a comprehensive financial plan.”
Maybe you have thought about working with a financial advisor, but misconceptions about how the process works might be holding you back. Read on for what you need to know about how working with a financial advisor could help give you the confidence boost you’ve been looking for.
Want more? Get financial tips, tools, and more with our monthly newsletter.
How an advisor can work with you to create a financial plan
Step 1: It all starts by simply sitting down and having a conversation with a financial advisor. He or she will get to know you by asking you what’s important to you in your life right now—and what you envision for your future. This discussion may also help them identify some goals you may not have considered. In the near term, are you planning to get married, buy a home or start a family? If you’re a bit older, are you getting ready to send your kids college, start a new business or prepare for a comfortable retirement?
Step 2: Once your advisor clearly understands your goals, he or she will ask you what financial strategies you already have in place. It’s likely you’re already doing some things that would be included in a plan, such as saving for retirement.
Step 3: The next step is helping you prioritize what’s most important so you can think critically about your goals. For instance, is buying your dream house at the top or your wish list or would a starter home be a better fit? Looking further ahead, is it more important for you to have enough money to retire early or to have enough to see the world—even if it means working a little longer?
Step 4: As you work through these questions, your answers will identify potential gaps in what you’re already doing financially. Now your financial advisor can tailor a plan specifically designed to help you balance the life you want to live today with the goals you plan to achieve in the future.
Feel better about taking action on your dreams.
Your advisor will get to know what’s important to you now and years from now. They can help you personalize a comprehensive plan that gives you the confidence that you’re taking the right steps.
Find your advisorWhat’s included in a financial plan
A good financial plan includes a wide range of options that can help set you on right path while being flexible enough to account any detours down the road. These may include:
An emergency fund
A plan to manage debt
Insurance to protect your family
An investment plan to grow your money
An estate plan
A retirement plan
Your plan may focus more heavily on one area than another based on your situation. Depending on your personal situation, your financial advisor will integrate components like these to help you grow and protect your wealth.
How your financial plan can increase your confidence level
Knowing you’re on track to reach your goals and that you have a plan for things that could go wrong can help you feel more confident not just about the future but also about spending your money on what’s important today. And your financial advisor can help you build a comprehensive financial plan that does just that.
“My message to women is they are not alone in figuring out their long-term financial plans,” says Williams-Kemp. “Regardless of your age, circumstances or expertise, find a professional advisor that you trust and put a solid plan in place. Those two steps can make a world of difference toward achieving greater certainty in the near term and financial security down the road.”
Still have questions? Take our quiz to learn more about how you can benefit from a financial plan that you create with a Northwestern Mutual advisor:
