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Women of all ages planning for retirement are grappling with an uncomfortable reality: Economic uncertainty and family caregiving responsibilities may be impacting their ability to retire with financial security. A new Advisor Authority study, powered by the Nationwide Retirement Institute, highlights how these attitudes and perceptions vary among different generations of women.
Women of All Ages Challenged by Caregiving, Economic Outlook
Caregiving commitments are forcing women of all generations to make difficult decisions between family obligations and career advancement. More than two-thirds (67%) of women investors who support children or aging parents say caregiving responsibilities have impacted their careers, and 18% say supporting children or aging parents has prevented them from saving for retirement.
Because of these caregiving responsibilities, women have taken actions that could have an adverse impact on their ability to save for retirement, including reducing work hours (26%), limiting professional development opportunities (19%), taking extended family or medical leave (18%), switching to part-time positions (13%), or declining or delaying promotions (11%).
Economic uncertainty is also creating financial stress for women. More than four in ten (42%) non-retired women investors believe inflation will increase in the next year. Nearly three in four (73%) women investors are concerned about a U.S. economic recession in the next 12 months, and a quarter (25%) describe their financial outlook for the next year as pessimistic.
“Our study sheds light on the financial challenges women of all ages are facing. Recent conditions of market uncertainty combined with the significant stress that family caregiving responsibilities are putting on women are certainly creating a challenging environment,” said Amelia Dunlap, vice president of Nationwide Retirement Solutions Marketing. “But the concerns of women investors are not one-size-fits-all. We’re seeing each generation of women process these challenges in different ways, creating opportunities for financial professionals to better serve clients in these groups.
Gen Z Women Focused on the Near-Term, but Open to Seeking Financial Advice
Still early in their careers, Gen Z (aged 18-28) women investors are more focused on addressing immediate financial obligations rather than long-term planning. This cohort lists basic household expenses, like groceries and utilities, as a top financial commitment over the next 12 months (61%), followed by paying down loans and debts (42%).
Further, 35% of Gen Z women list caring for family members as a top financial commitment over the next 12 months — the most of any generational cohort (vs. 23% of Millennials, 23% of Gen X, and 16% of Baby Boomers+).
While focused on these short-term financial commitments, Gen Z women recognize they need assistance. About a quarter of Gen Z women who support children or aging parents (23%) are likely to seek advice from a financial professional to help manage the pressure of supporting family members. This number slightly outpaces their older peers (22% Millennial, 22% Gen X).
