WOMEN & INVESTING ANALYTICAL REPORT: Winning With Female Married … · 2021. 3. 9. · New York Life Investments conducted an online quantitative survey of 500 married . female breadwinners

WO ME N & IN V EST ING A N A LY T ICA L R EPOR T:

Winning With Female Married Breadwinners

IntroductionWomen are powerful influencers of household investment decisions. Trends indicate a shifting dynamic with more women becoming the primary source of income for households and taking an increasingly principal role in a household’s retirement and everyday expenditures. Our previous research outlined four major segments of women investors: the suddenly single (recently divorced or widowed), the married contributor, the single breadwinner, and the married breadwinner. As a continuation of this research, we recently commissioned an in-depth study examining how married breadwinners and their spouses view their relationship with money, readiness for retirement, financial responsibilities, and the ideal role a financial professional should play in their everyday lives.

FOR INSTITUTIONAL USE ONLY – NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC

FOR INSTITUTIONAL USE ONLY – NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC 1

Married women make up a significant percentage of primary earners in the United States. And despite the gender pay gap, that number has been on an upward trajectory in recent years. More than one in five households are headed by women who earn more than her spouse. No matter what used to be deemed “traditional,” most view their household today as “normal.” However, over a quarter of these women also report that their household faces more challenges because of their financial role. Financial professionals who can understand and address the precise needs of these households have an opportunity to better serve a significant, emergent, and affluent segment of the investing population, as well as acquire new clients in this fast-growing demographic.

Why focus on women who are married breadwinners?

It’s critical to understand the relationship dynamics between a married breadwinner and her spouse in order to successfully serve them. Our research identified four types of mindsets, each distinguished by how the married breadwinner views her household’s approach to financial responsibilities. Some married breadwinners feel that We’re in This Together. Others say I Got It. A select few would like A Little Help Please. And still others tell their spouses I’ve Got It from Here.

When financial professionals address the needs inherent within each group, they can more holistically prepare the client for the future with a personalized retirement plan, explore insurance products to protect their families and income, provide household budgeting guidance, and offer investment strategy advice.

New York Life Investments conducted an online quantitative survey of 500 married female breadwinners and 165 spouses of married breadwinners. The breadwinners are the primary source of income for their household, with investable assets of $250,000 or more. These women are married or living with their partner (spouse) in a committed

relationship, and both parties have some level of involvement with household financial decisions. The breadwinners and spouses interviewed are not from the same household, and all are aged 25 and older.

The research showed that married bread-winners are generally more interested in financial education than their spouses. Yet, they don’t have a lot of time to gain that knowledge. We identified a list of topics that female primary earners would like to learn more about, with retirement being the top choice. Spouses indicated a level of interest in the same subjects.

Simply stated, married breadwinners want a financial professional who will make them the most money and guide them to a fulfilling retirement. Yet the research also highlighted other equally important factors. For example, being valued by their financial professional is also a high priority, with many saying they would rather feel valued and make a little less money. Women also see opportunities for improvement and unique needs being unmet.

This paper describes our research process and highlights key findings, as well as the analytical data for each question.


Recognize the relationship dynamic For financial professionals, appreciating the relationship dynamics between the married breadwinner and her spouse is key to unlocking the potential to serve them. Our study provides insights into how each group views themselves, their partners, and the financial roles in the relationship.

A NEW TRADITIONAL

At a high level, married breadwinners and spouses agree that their relationship is normal. Though it may vary from what used to be considered traditional, to them they are traditional. Both groups are generally happy with their financial role in the relationship, and don’t expect that the primary earner will change. However, there are portions of both groups who prefer the financial duties were reversed.

Opinion on relationship and household

50%

44%

40%

33%

21%

21%

16%

15%

My spouse/partner is supportive of me as the primary source of income

My spouse/partner appreciates the hard work I do

My spouse/partner and I are aligned on our financial goals for the future

I live in a “normal” household

Being the primary source of income for the household sets a good example for my children

I feel like everyone relies on me

Being the primary source of income for the household is a source of pride for me

Being the primary source of income for the household is fulfilling

Agree completely Agree somewhat

82%

78%

75%

71%

60%

54%

54%

54%

Base: Married Breadwinners (N=500). 2r. How much do you agree or disagree with each of these statements?


Prefer the role of primary household earner was reversed

Percentage who answered “yes”

MARRIED BREADWINNER SPOUSE

HOW MARRIED BREADWINNERS FEEL ABOUT THEIR ROLE

These women are leaders and decision makers who associate a range of emotions—positive, negative, and neutral—with being a primary earner. Positive feelings are common, the most frequent being that their role makes them feel strong. Certain emotions, such as motivated, can indicate an openness to the benefits of a financial professional. A portion of women also report being stressed out by their responsibilities, a situation where a financial professional can also potentially help alleviate some of the burden.

Overall feelings: The most common feelings associated with being the primary breadwinner

Strong

Proud

MotivatedHappy

Empowered

Superior

Dominant

Positive net

Resentment

Frustrated

Worried

Angry

Sad

Weak

Worthless

Inferior

Different

Stressed

Tired

Negative net

39% 18%


SOME CLEAR DIFFERENCES

Couples generally support each other’s roles in the relationship. However, a faction of married breadwinners feel they bear a greater burden and express that they’d like “more” from their spouse. A significant number also believe their household faces more challenges with them as the main earner. Spouses experienced those sentiments significantly less. Addressing the reasons behind these disparate views can help financial professionals better meet the financial needs of these segments of the investing population.

I wish my partner would shoulder more household budgeting responsibilities:

35%of married breadwinners 8%of spouses

I wish my partner would shoulder more of the investment responsibilities:


Our household faces more challenges with a female primary earner:



Four married breadwinner mindsets In our research, four distinct married breadwinner mindsets emerged, representing four different views on household financial responsibilities. While each mindset has unique opinions, feelings, and other attributes, they also share certain qualities. For financial professionals, understanding the opportunities and barriers associated with each mindset is essential to serving married breadwinners and their spouses.

MINDSET 1: WE’RE IN THIS TOGETHER

These married breadwinners are appreciative and family-oriented. Both parties in this couple are proud of their partner’s contributions, and feel they are a team. More than any other, this group of married breadwinners doesn’t feel that their family is any different—things are the way they are, and that is normal. These women feel supported by their spouses, and far fewer view their role as a burden.

80%report their spouses are supportive of them as the primary source of income.

“It is fine the way we are; I make more money, but we both work hard.”

FINANCIAL PROFESSIONAL STRATEGY

The “We’re in This Together” married breadwinner knows a fair amount about investing, but she’s somewhat interested in learning more with her spouse. They’re content with their current financial planning, so a financial professional would have to prove what they could bring to the table. A financial professional should view both parties as equals, treat them as “normal,” and acknowledge what they’ve accomplished while showing how the financial professional can build on it.


MINDSET 2: I GOT IT

More than any other group, these married breadwinners feel strong, proud, and fulfilled by their role, which they say sets a good example for their children. Whether it’s because they feel that they can do it better or due to a lack of faith in her partner, these women enjoy being in control of household finances. By and large, they feel supported by their spouse, but are also more likely to feel a burden from their earning role.

41% feel fulfilled being the primary breadwinner.

“I am comfortable in a leadership role and making more money; my partner feels the same way.”


The “I Got It” married breadwinner is knowledgeable about investing and interested in furthering her financial education. She views a financial professional as a necessity and, as the primary decision maker, she chooses them. A sound approach for a financial professional would be to congratulate her success, while showing how a financial professional can add to her financial education. This married breadwinner feels that women face unique challenges in the financial world, so it can be a good idea to include a woman on the advisory team.



MINDSET 3: A LITTLE HELP PLEASE

The married breadwinners in this group are feeling the negative impact of being the primary source of their household’s income. They’ve taken on additional responsibilities, and would like their partner to shoulder more of the burden. This group overwhelmingly feels that their financial role has had a negative impact on their relationship. These women are stressed and tired. Few feel supported or appreciated by their spouse.

42% feel like everything depends on them.

“My husband does not take enough responsibility.”


Compared to married breadwinners overall, the “A Little Help Please” segment doesn’t have as much investment knowledge, but she’d like to learn more. She also considers a financial professional essential. Though she makes financial decisions for the household, she does not enjoy being in charge. A financial professional should empathize with her, while also highlighting the positives of what she’s accomplished. A top priority would be communicating how a financial professional can alleviate some of her stress regarding her financial responsibilities.


MINDSET 4: I’VE GOT IT FROM HERE

This type of married breadwinner appreciates the hard work that her spouse has done in the past. Whether her spouse has retired, or the married breadwinner’s careers have surpassed her partner’s, these women are proud to be the primary earner now. They feel it’s their turn. These women have positive emotions about their new role, don’t typically see it as a burden, and generally feel supported by their spouse.

18%wish their spouse would take on more household, budgeting, or investment responsibilities (less than any other group).

“He has worked hard his entire life and has retired— I want him to enjoy it, and at this stage of my life, I am in my dream job!”


In the “I’ve Got It from Here” group, the married breadwinner is new to the primary earner role and wants her spouse to be a significant part of the financial planning. Because the couple is somewhat older and more established financially, they are past the “building” stage of their planning. Financial professionals should treat both parties as equals and compliment their achievements, while highlighting how a financial professional can help them continue their successes.


Opportunities for the right financial professionalThe level of financial knowledge and preparedness reported by married breadwinners suggests specific areas where they might benefit from working with a financial professional. Our research paints a picture of what a financial professional can bring to the married breadwinner’s table.

THE IDEAL FINANCIAL PROFESSIONAL

Most married breadwinners want a financial professional who will make them the most money. However, a significant amount say they would rather feel valued by their financial professional even if it meant making a little less money. The sex of the financial professional is not much of a concern to married breadwinners, and it matters even less to their spouses.

Opinions on the ideal financial professional

66%61%

34%

22%

14%

5%

I just want a financial professional that will make me the most money

I would rather feel valued by my financial professional and make a little less money than not be valued by my financial professional

I would prefer to work with a financial professional of the same sex as me

Married breadwinners Spouse of married breadwinners


GREATER HOLISTIC PLANNING

A particular topic of concern to married breadwinners is retirement planning. However, their level of interest in other areas shows an opportunity for financial professionals to provide more holistic planning, as well. Financial professionals can suggest insurance products to help these women protect their assets and income, give guidance on day-to-day household budgeting, and offer information regarding appropriate investment strategies.

MORE PREPARED WITH A FINANCIAL PROFESSIONAL

Most breadwinners felt prepared to become the main source of income for their household, though a significant amount said that starting the planning process earlier would have been helpful. Additionally, women who currently work with a financial professional are more likely to feel prepared in general. This suggests another area where a financial professional may be of use to married breadwinners—building savings to prepare for unexpected financial events.

“I would have been more prepared if we had been more responsible with our finances and saved more.”

HIGH SATISFACTION, BUT AN AREA OF OPPORTUNITY

Most married breadwinners currently work with a financial professional. Nearly all who do are highly satisfied with their current financial professional (as are their spouses), who they feel takes them seriously and treats them fairly. Our research also shows that working with a financial professional tends to have a positive emotional impact on married breadwinners. Yet, less than half consider themselves very knowledgeable when it comes to finances.

56% of married breadwinners wish they had a better understanding of finances and investing.


Financial education is a top priority, but time for it is scarceKNOWLEDGE IS ESSENTIALWhile both spouses and married breadwinners are likely to rely on financial professionals, married breadwinners have a greater desire for financial knowledge. Consistent with their investment goals and level of concern with it, retirement tops the list of topics that married breadwinners would like to become better educated. Spouses are also looking to learn more about these subjects, but have less interest overall.

Topics that married breadwinners and spouses would like to learn more about:

54%

44%

22%

12%

14%

40%

34%

21%

5%

36%

Retirement

Stocks and bonds

Basic financial literacy

Budgeting

None of these

Married breadwinners

Spouse of married breadwinners

Arrow denotes statistical significance between married breadwinners and spouses at 90% confidence interval

Base: Married Breadwinners (N=500); Base: Spouse of Married Breadwinners (N=165) 3b. On which topics related to finance and investing would you like to be further educated on?


TIME CONSTRAINTS REQUIRE CREATIVE CHANNELS

While financial education is critical to married breadwinners, especially regarding retirement planning, our research revealed that these women also have less free time for it. This is particularly true for primary earners with the “A Little Help Please” and “I’ve Got It from Here” mindsets. Our study also discovered which formats (with or without a financial professional) married breadwinners would most likely make the time for.

31% of married breadwinners don’t have enough time to learn about new investment options.

Definitely/probably would participate (married breadwinners vs. spouse)

In-person investment education events

Online investment classes

Virtual assistant or app-based education platform

Round table forum with like-minded investors run by a financial professional

Private social media group maintained by a financial professional

Arrow denotes statistical significance between married breadwinners and spouses at 90% confidence interval

51%

42%

42%

30%

19%

31% 16%

11%23%

34%

MARRIED BREADWINNER

SPOUSE

Base: Married Breadwinners (N=500); Base: Spouse of Married Breadwinners (N=165) 3c. How likely would you be to participate in each of the following if it were offered by a financial professional?


SOME UNIQUE CHALLENGES

Many married breadwinners feel they face unique financial challenges as women. A significant amount feel patronized by financial professionals, who they believe are less likely to listen to investment ideas from a woman. Spouses tend to agree with these sentiments, though to a lesser extent. Yet, an area that married breadwinners generally don’t feel they are at a disadvantage is access to financial education. They know that the knowledge is out there—it’s up to the right financial professional to bring it to them.

TO SUM UP

Married breadwinners are proud of their position as primary household earner, and many feel supported by their spouses. These women understand they have an important household role—if, at times, a stressful one.

A financial professional has the opportunity to help ease the burden of married bread-winners’ additional responsibilities and unique challenges. The ideal financial professional will understand the relationship dynamic of married breadwinners and their spouses, and work to both make them money and make them feel valued. This financial professional can best serve this growing segment of the investing population by providing financial education, particularly regarding retirement, and being a reliable source for financial needs.

SURVEY RESULTS


MARRIED BREADWINNER

SPOUSE

I act as the primary decision maker 56% 25%

I share equally in the decision making process 42% 70%

I am involved in the process, but I am not the primary decision maker 2% 5%

83%male 17% female

1 What is the gender of your spouse?

2 What is your level of involvement in financial decision making?

SURVEY RESULTS

15FOR INSTITUTIONAL USE ONLY – NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC

3 Do you work with a financial professional?

MARRIED BREADWINNER

SPOUSE

YES, I work with a financial professional 75% 76%

NO, I do not work with a financial professional 25% 24%

Of those who answered NO: I used to work with a financial professional 60% 25%

Of those who answered NO: I have never worked with a financial professional 40% 75%

SURVEY RESULTS


4 How long have you worked with a financial professional?

MARRIED BREADWINNER

SPOUSE

Less than 5 years (net) 29% 24%

5 – 15 years (net) 45% 52%

16+ years (net) 26% 24%

SURVEY RESULTS


5 What is your level of financial and investment knowledge?

MARRIED BREADWINNER

SPOUSE

Extremely/very knowledgeable (net) 41% 34%

Somewhat knowledgeable 46% 50%

Not very/at all knowledgeable (net) 13% 16%

SURVEY RESULTS


6 Married breadwinner What is your level of agreement with these statements?

AGREE COMPLETELY/

SOMEWHAT

NEITHER AGREE NOR DISAGREE

DISAGREE SOMEWHAT/COMPLETELY

I am well prepared financially for the future 82% 12% 6%

I rely on my spouse/partner for information on finances and investing

25% 21% 54%

I rely on financial professionals for information on finances and investing

69% 16% 15%

I have financial goals in place for the future 93% 6% 1%

I do not have enough time to learn about new investment options

31% 29% 40%

Long-term investing is secondary to other more near-term household needs

26% 19% 54%

I wish I had a better understanding about finances and investing

56% 23% 22%

I wish there were more or better educational opportunities for me to learn about finances and investing

48% 34% 19%

SURVEY RESULTS


6 SpouseWhat is your level of agreement with these statements?

AGREE COMPLETELY/

SOMEWHAT



I am well prepared financially for the future 82% 13% 5%

I rely on my spouse/partner for information on finances and investing

25% 18% 58%

I rely on financial professionals for information on finances and investing

71% 13% 16%

I have financial goals in place for the future 88% 7% 4%

I do not have enough time to learn about new investment options

15% 26% 59%

Long-term investing is secondary to other more near-term household needs

14% 24% 62%

I wish I had a better understanding about finances and investing

47% 30% 23%

I wish there were more or better educational opportunities for me to learn about finances and investing

35% 36% 29%

SURVEY RESULTS


7Married breadwinnerWhat are your investment goals? Starred categories show top three goals within each age group

AGES 25-39 AGES 40-59 AGES 60+

Saving for retirement 47% 79% 47%

Saving for education for children 49% 14% 3%

Funding travel 16% 28% 30%

Ensuring the financial future of heirs 14% 10% 13%

Being able to live a comfortable lifestyle 58% 64% 74%

Being able to splurge on things/experiences for myself

19% 9% 12%

SURVEY RESULTS


AGES 25-39 AGES 40-59 AGES 60+

Being able to splurge on things/experiences for others

19% 2% 5%

Being able to take care of my parents/elders 14% 3% 2%

Being able to cover potential long-term care needs for myself or my spouse/partner

21% 38% 54%

Protecting my future 44% 51% 59%

Other 0% 0% 0%

7Married breadwinnerWhat are your investment goals? (continued) Starred categories show top three goals within each age group

SURVEY RESULTS


8 What was your employment/career status at the beginning of your relationship?

MARRIED BREADWINNER

SPOUSE

Established in my/their career 75% 65%

On my/their way in my/their career 9% 13%

Getting started in my/their career 11% 12%

Yet to start my/their career 6% 9%

SURVEY RESULTS


9 Are your finances the same or different from the way they were in the beginning of your relationship?

MARRIED BREADWINNER

SPOUSE

Same 67% 79%

Different 33% 21%

10 Is your primary source of income the same or different from what it was in the beginning of your relationship?

MARRIED BREADWINNER

SPOUSE

Same 49% 32%

Different 51% 68%

SURVEY RESULTS


11 What was the reason for the change in your primary source of income?

MARRIED BREADWINNER

SPOUSE

My spouse/partner lost their job/I lost my job 12% 19%

My spouse/partner/I retired 44% 36%

I /my spouse/partner got a raise/promotion or I got a new job 40% 41%

I/my spouse/partner received an inheritance 4% 4%

SURVEY RESULTS


12 Would you prefer that your role was reversed?

MARRIED BREADWINNER

SPOUSE

Yes

Yes

13 What impact has your role had on your relationship?

MARRIED BREADWINNER

SPOUSE

Very/somewhat positive impact (net) 29% 20%

No impact 46% 76%

Somewhat/very negative impact (net) 25% 4%

SURVEY RESULTS


14 On which topics related to finance and investing would you like to be further educated on?

MARRIED BREADWINNER

SPOUSE

Retirement 54% 40%

Budgeting 12% 5%

Basic financial literacy 22% 21%

Stocks and bonds 44% 34%

Other 7% 6%

SURVEY RESULTS


15 How likely is it that you would participate in online investment classes?

MARRIED BREADWINNER

SPOUSE

Definitely/probably would participate (net) 42% 30%

Might or might not participate 33% 34%

Probably/definitely would not participate (net) 25% 36%

SURVEY RESULTS


16 Married breadwinnerHow much do you agree or disagree with each of these statements?

AGREE COMPLETELY/

SOMEWHAT



Financial professionals are less likely to listen to investing ideas from a woman

28% 34% 38%

Financial advising is a man’s world 23% 24% 53%

Women have less access to financial education 24% 30% 46%

Women have unique financial challenges 55% 30% 15%

The financial services industry is behind the times 20% 51% 29%

SURVEY RESULTS


16Married breadwinnerHow much do you agree or disagree with each of these statements? (continued)

AGREE COMPLETELY/

SOMEWHAT



Women feel patronized by financial professionals 28% 40% 32%

Financial professionals (unconsciously or consciously) push women out of financial conversations

24% 35% 41%

A female financial professional would be more attuned to my needs

24% 51% 25%

A male financial professional would be more attuned to my needs

12% 53% 35%

It is important that my financial professional team has at least one woman

27% 44% 29%

SURVEY RESULTS


16SpouseHow much do you agree or disagree with each of these statements? (continued)

AGREE COMPLETELY/

SOMEWHAT



Financial professionals are less likely to listen to investing ideas from a woman

15% 42% 43%

Financial advising is a man’s world 12% 28% 59%

Women have less access to financial education 11% 32% 58%

Women have unique financial challenges 45% 37% 18%

The financial services industry is behind the times 8% 50% 42%

SURVEY RESULTS


16SpouseHow much do you agree or disagree with each of these statements? (continued)

AGREE COMPLETELY/

SOMEWHAT



Women feel patronized by financial professionals 23% 47% 30%

Financial professionals (unconsciously or consciously) push women out of financial conversations

15% 39% 46%

A female financial professional would be more attuned to my needs

8% 72% 20%

A male financial professional would be more attuned to my needs

5% 61% 34%

It is important that my financial professional team has at least one woman

15% 56% 29%

SURVEY RESULTS


17 With whom does your financial professional communicate the most?

MARRIED BREADWINNER

SPOUSE

You 54% 33%

Your spouse/partner 14% 14%

Equally between yourself and your spouse/partner 32% 53%

SURVEY RESULTS


18 Do you agree with these statements about your financial professional?

MARRIED BREADWINNER

SPOUSE

Takes you seriously 72% 69%

Would rather talk to your spouse/partner 3% 4%

Treats you fairly 71% 73%

Treats you and your spouse/partner as equals 60% 73%

Makes you feel important 34% 31%

Understands the needs of women 29% 25%

None of these 3% 5%

SURVEY RESULTS


19 Which of these financial products do you currently own?

MARRIED BREADWINNER

SPOUSE

Checking account 96% 100%

Savings account 87% 86%

Certificate of deposit (CD) / Money market account 43% 46%

401(k) or 403(b) 76% 65%

Other employer sponsored retirement plans 25% 19%

IRA/Roth IRA 73% 75%

SURVEY RESULTS


19 Which of these financial products do you currently own? (continued)

MARRIED BREADWINNER

SPOUSE

Pension plan (also referred to as a defined benefits plan) 45% 44%

Brokerage account with individual stocks and bonds 49% 54%

College savings account (529 plan) 17% 14%

Variable annuities 15% 24%

Fixed annuities 18% 21%

Trust 26% 26%

SURVEY RESULTS


19 Which of these financial products do you currently own? (continued)

MARRIED BREADWINNER

SPOUSE

Will 53% 61%

Estate plan 18% 25%

Insurance (net) 66% 67%

Life insurance 60% 59%

Long-term care insurance 23% 17%


New York Life Investments commissioned this market research study which was conducted

by RTi Research. They survey was in the market in February and March of 2020 and was

completed by 500 female breadwinner panelists with the following qualifications: 25+ years

of age, married/living with a partner in a committed relationship, at least involved in making

household financial decisions, $250,000 or more in household investable assets and the

primary source of income in their household. The survey was also completed by 165 spouses

of female married breadwinners with the following qualifications: 25+ years of age, married/

living with a woman in a committed relationship, at least involved in making household financial

decisions, $250,000 or more in household investable assets and not the primary source of

income in their household. Please note, spouses are not from the same household as the

married breadwinners.

Methodology

For more information888-474-7725, option 1, followed by option 2

FOR INSTITUTIONAL USE ONLY – NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC

Insights presented in this report are derived from a 2020 study conducted by NY Life Investments in partnership with RTi Research. The study employed both qualitative and quantitative methods to better understand the needs of female married breadwinner and their spouses when it came to investing in the U.S. (Sample size: Married Bread Winners: N=500, Spouse of Married Bread Winners: N=165).

“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company.

1863984 RIS040-20 RIS38k-08/20

Documents

WOMEN & INVESTING ANALYTICAL REPORT: Winning With Female Married … · 2021. 3. 9. · New York Life Investments conducted an online quantitative survey of 500 married . female breadwinners