Empowering Women as Financial Decision-Makers: Insights from Allianz Study

According to the latest Women Money Power Study by the Allianz Center for the Future of Retirement, a division of Allianz Life Insurance Company of North America, more than half of U.S. women now consider themselves the primary financial decision-makers in their households. This trend highlights the increasing involvement of women in insurance and retirement planning, even as confidence in long-term financial stability declines.

The study found that the percentage of women identifying as household CFOs has risen to 53%, up from 41% in 2021 and 49% in 2023. This role is particularly prevalent among millennial women, with 63% assuming this responsibility, compared to 46% of Generation X and 45% of baby boomer women.

However, the added responsibility has led to heightened stress levels. Over half of the surveyed women have experienced greater stress over the past two years, citing financial pressures such as inflation, rising healthcare costs, and the risk of depleting retirement funds. Heidi Vanderkloot, Head of FMO Distribution at Allianz Life, noted, "As more women take on the role of CFO for their households, the increased responsibility can feel overwhelming."

Women’s confidence in their financial stability has also declined. Currently, 63% feel financially secure, a drop from 72% in 2021 and 64% in 2023. Retirement planning remains a key concern, with only 46% confident in their retirement strategies, down from 52% in 2023. Confidence varies significantly by marital status, with lower levels reported by single and divorced women.

This demographic shows considerable worry about outliving savings. Among single women, 62% express this concern, compared to lower percentages among married and widowed women. Generation X is the age group most anxious, with 65% fearing they will exhaust their retirement funds.

Implications for Insurers

For insurers, these findings suggest growing demand for products offering guaranteed income and structured retirement strategies, particularly for women lacking dual incomes or spousal support. The study highlights a gap in professional financial guidance, especially for single and divorced women, with only 15% consulting financial professionals. Vanderkloot remarked, “The guidance of a financial professional can make a pivotal difference in your financial confidence.”

For insurance carriers and intermediaries, the study presents challenges and opportunities. The challenge lies in bridging the gap for uninsured or underinsured women facing risks like income loss, serious illnesses, long-term care needs, and outliving assets. The opportunity is in developing targeted products and services to meet the unique needs of women at various life stages and marital statuses.