New LIMRA Secure Retirement Institute research finds that women are more likely to share the financial decisions with their spouses, compared with men. Two-thirds (67 percent) of women aged 50 and older say they share the decision-making responsibilities for their finances while only 46 percent of men say they share financial decisions with their spouses.
Only 30 percent of women are the primary financial decision makers in households with more than $1 million net worth. Yet the study found that women as primary decision makers are as likely or more likely to have completed many retirement planning activities, compared with men. For both women and men who are primary decision makers, one quarter have a formal retirement income plan. Women are more likely to have determined what their income will be, how long their assets will last and developed a specific plan for generating retirement income from their savings.
Why does this matter?
LIMRA Secure Retirement Institute research finds that an advisor who conducts retirement income planning with their clients has greater client satisfaction and loyalty (42 percent of clients with a plan trust their advisors and the advice they provide, three times more than the clients without a plan). Yet many couples disagree about their desired lifestyles in retirement. According to an Allianz Life Insurance study,70 percent of women switch advisors following the death of their spouse. Therefore, it is important to involve both spouses in the financial decisions, which will foster a stronger relationship with both spouses.