Financial Security Challenges Faced by Women in the U.S.

A recent study conducted by Northwestern Mutual has illuminated the financial discrepancies experienced by women in the United States. As per the 2023 Planning and Progress Study, a substantial number of women harbour feelings of insecurity regarding their financial situation and readiness for retirement in comparison to men.

The research unveiled that a mere 40% of women in the U.S. feel financially secure, and only 44% believe that they will be adequately prepared for retirement. In contrast, 61% of men express confidence in their financial preparedness for retirement. These findings underscore the prevailing gender gap in financial security and retirement planning.

Furthermore, the study highlighted that Gen Z and millennial women exhibit a more positive outlook towards the future, despite acknowledging the imperative need for enhancement in their financial planning. This buoyant attitude towards financial security among younger generations has the potential to pave the way for a more financially empowered cohort of women in the future.

Martha Cooper Hudson, an advisor at Northwestern Mutual in Charlotte, emphasised the various obstacles that women encounter in their pursuit of financial stability, including the prevalent gender pay gap. She underscored that factors such as life expectancy, retirement age, maternity leave, and caregiving responsibilities significantly impact women’s approach to financial planning.

In response to these challenges, Cooper Hudson offered practical guidance for women aiming to address the gender disparities in financial security. She suggested that women should furnish evidence of their positive performance and achievements when seeking a pay raise, strategically schedule the timing of their salary discussions, maintain discretion regarding their compensation, and negotiate for a raise when offered a promotion.

Amid the financial barriers faced by women, there have been notable triumphs in female entrepreneurship and business leadership. Cooper Hudson noted that women in the U.S. are establishing businesses at a higher rate than men, with women owning 42% of businesses in the country. Furthermore, between 2014 and 2019, the number of companies owned by women increased by 21%, surpassing the overall business growth rate of 9%. Significantly, women of colour own 50% of women-owned businesses in the U.S., indicating a trend of escalating diversity in entrepreneurship.

In conclusion, the study by Northwestern Mutual has brought attention to the financial challenges encountered by women in the U.S., underscoring the necessity for proactive measures to tackle gender disparities in financial security and retirement readiness. By acknowledging the existing barriers and leveraging the accomplishments in female entrepreneurship, strides can be made towards creating a more equitable and inclusive financial landscape for women across the nation.