Fri, 05 August 2022 | retirement women
Inflation risk (73%) tops the list of women's financial concerns, ahead of illness or disability (71%), market volatility (70%), longevity (58%) and unemployment (43 percent ). 41% of women say they know how to avoid inflation risk.
The State of Women 2022 study examined women's financial risks and investment portfolios. All income levels showed low inflation preparedness. 44% of women with incomes above $200,000 know how to address inflation risk in their portfolios.
Jean Chatzky, HerMoney CEO and Alliance for Lifetime Income Fellow, says inflation protection is simple. "Prioritize high-interest debt. Delay Social Security to boost monthly benefits. Keep a diversified investment portfolio for growth and use annuities or pensions for retirement fixed costs. Keep track of your spending to avoid unnecessary or impulsive purchases."
Only 12% of women are risk-averse investors. 62% are riskier than their parents, while 35% are riskier than their partners.
"Women should embrace market risk but also protect their futures," said Alliance for Lifetime Income CEO Jean Statler. "41% of women say portfolio protection is more important than high returns. As women near retirement and enter their highest-earning years, they should consider adding protected income to their portfolios."
Women are risk-averse in their careers (32%), personal lives (30%), but not their investments (12 percent ). 43% say they take more financial risks than with their life or work.
Many "future selves" may regret not taking personal risks in 20 years. Saving more money for later (45%) is the only regret in the top five, alongside career and personal risks like not traveling outside my comfort zone (57%), making new friends (43%), working less to spend more time with family (41%) and saying what you really think (41%). (37 percent ).
Source: Alliance for Lifetime Income