More Women Report Prioritizing Day-to-Day Expenses Over Their Financial Future Because of the Pandemic

One-third of women say they are struggling to make ends meet, according to new research from Lincoln Financial Group (NYSE: LNC). The company’s January 2021 Consumer Sentiment Tracker found that while men are more focused on financial issues like the impact of taxes, stock market volatility and long-term-care expenses, women report the pandemic has resulted in a greater focus on their day-to-day finances (71%) rather than planning for the future.

Mastering the Financial Balancing Act

The events of the last year have caused a change in mindset for all Americans. However, the Lincoln study found the COVID-19 crisis has hit women harder financially with more frequent job impacts than men (35% vs. 28%), driving their top concerns of covering day-to-day expenses (34%) and a lack of emergency savings (45%). As men are taking on more strategic long-term financial actions like meeting with a financial advisor, women are enduring financial hardships in order to make necessary and immediate financial decisions. They are delaying major purchases like cars and homes (24%) and drawing from their emergency funds (21%).

“The research demonstrates that the pandemic has accentuated the gender income gap,” said Kristen Phillips, senior vice president, Corporate Marketing, Communications and Strategy. “Millions of women left the workforce in the last year not only due to job loss, but because of caregiving responsibilities at home. As a result, many are living paycheck-to-paycheck with minimal savings, unsure of how to prioritize retirement and their long-term financial outlook too. As an industry, we have an opportunity to help provide women with the tools and knowledge that will enable them to create more positive outcomes.”

Strengthening Financial Confidence

One area where women could use a boost is feeling more empowered about their financial future. Lincoln’s research found that women are more than twice as likely to be unfamiliar with financial planning and investments than men, who are increasingly reading and learning about financial markets and investing. Men are also currently working with a financial professional in greater numbers than women (42% vs. 26%). The WISE Group (Women Inspiring, Supporting and Education) has been striving to better support the unique needs of female financial advisors and their clients since it was formed by Lincoln Financial Network—the retail wealth management affiliate of Lincoln Financial Group—in 2015. Anita Grossman, president and founder of Grossman Financial Planning Group and a representative of Lincoln Financial Advisors, is a WISE member.