Women told us: ‘We are confident investors’

Our latest study on women’s financial wellness reveals increasing assurance in money matters — and a desire to learn more to better pursue long-term financial goals

WOMEN ARE INCREASINGLY TAKING CHARGE when it comes to their finances and their future. They’re becoming more at ease talking about money — especially with other women — more likely to seek out financial information and advice, and more confident in pursuing their goals. When asked if they believe that “men are more knowledgeable about finances and investing than women,” only 27% of women agreed — compared with 43% of men.¹ Those are just some of the key findings of a recent Merrill study, “Women, Money, Confidence: A Lifelong Relationship,” which tracks significant progress in many areas when compared with the results of a similar Merrill study conducted in 2018.²

53%

of women say they are confident managing their investments,¹ up from

49%
in 2018²

“The events of recent years have caused a lot of women to step back and ask themselves, ‘How do I plan for the future that I want?’ whether that’s by paying down debt, saving and investing more money or earning more,” says Lorna Sabbia, head of Workplace Benefits. The latest study found that, while a majority of women feel they’re doing well managing their day-to-day finances, they recognize that more progress is needed, particularly when tackling longer-term goals. The survey also reinforced key differences emerging among generations. For example, women under 40 are more comfortable asking for a raise and discussing new investment opportunities, and young married women are more than twice as likely as previous generations to be the primary decision-makers in the family when it comes to money.³ “There’s a lot that’s changing with the next generation of women that I think is really phenomenal,” says Sabbia.

Explore the study’s highlights below plus next steps to consider to help you achieve your financial goals.

Women rate their progress — and set their sights on even bigger gains

The majority of women feel they’re on the right track — but 1 in 5 acknowledge “it’s time for a change” in the way they manage their finances.

Women recognize a need for a greater focus on long-term goals

36% are not confident they’ll be able to pay for future healthcare expenses

40% are not confident they’ll have a comfortable retirement

27% feel they’re doing well building wealth

Top 3 areas women cite as barriers to financial wellness¹

36% say “paying off debt”

34% say “high cost of living”

31% say “not being paid enough” — down sharply from 44% in 2018

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Make a plan and find more money to invest

61%
of women say they would rather get a raise than more time off at work.¹

Map out clear financial goals and create a plan to pursue them. That means understanding how much you may need to save for retirement, what your healthcare costs may be as you age and how to plan financially to come back from career breaks. “The first thing women can do to build their finances is plan,” says Sabbia. “Make a plan to pay down your debts and make a plan to save your money.”

Ask for a raise or promotion — or look for a better job. “We should take an active role in advocating for ourselves,” says Savita Subramanian, head of U.S. Equity & Quantitative Strategy and ESG Research, BofA Global Research. “Know your worth and get comfortable talking about money. You can say to your manager, ‘The going rate for what I do is X. I’m making X minus Y. What do I do to get to X?’ ”

Define your personal investing style — and understand what you’re investing for

50%
of women 65 and older say that their biggest financial regret is not starting to save or invest sooner.¹

Calculate how much you may need in retirement to better understand the risk of not investing more for your future. “Use your 401(k) plans, get your matching dollars and make your money work for you,” says Sabbia. “I also recommend contributing to a health savings account (HSA). HSAs are tax-advantaged savings plans that allow you to set money aside for future healthcare costs.”

Expand your knowledge about investing

53%
of women say it’s easier to talk to other women about their finances.¹

Invite friends or colleagues to a monthly get-together to talk about money and investing.

Ask local financial advisors to speak to your group about current market conditions and ways to plan for your goals.

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¹Merrill and Ipsos, “Women, Money, Confidence: A Lifelong Relationship,” February 2022.

²Merrill and Age Wave, “Women & Financial Wellness: Beyond the Bottom Line,” 2018.

³Merrill and Escalent, “Seeing the unseen: The role gender plays in wealth management and what our four-part study revealed,” 2020.

Women told us: ‘We are confident investors’

More than ever, women are owning their financial futures

Women rate their progress — and set their sights on even bigger gains

Women recognize a need for a greater focus on long-term goals

Top 3 areas women cite as barriers to financial wellness¹

Steps you can take to improve your financial wellness

Make a plan and find more money to invest

Define your personal investing style — and understand what you’re investing for

Expand your knowledge about investing

A private wealth advisor can help you get started.

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