Closing the Gap: Iowa Insurance Division's Survey Shows Gender Gaps in Financial Literacy, Particularly for Retirement Financial Decisions & Investing
The 2020 survey reveals that over 60% of female Iowans lack knowledge about investments and investment products. The Iowa Insurance Division is now using valuable research findings to develop public education programming for its newly launched SmartHER Money initiative to help Iowa women achieve financial security.
DES MOINES, Iowa, July 26, 2021 /PRNewswire-PRWeb/ -- Women are often financially responsible for both their children and aging parents and need more retirement savings because statistically they live longer than men.
Yet a recent "SmartHER Money Literacy Financial Research" survey commissioned by the Iowa Insurance Division (IID) and conducted by AMPERAGE Marketing & Fundraising (AMPERAGE) has revealed some eye-opening takeaways about how female Iowans view financial management, insurance, retirement planning and investments.
On the positive side, Iowa women are active in daily household financial decisions and outpace the national average in participation in employee-sponsored retirement plans, such as a 401(k) or pension. According to a 2017 Pew Trust study, 48% of all Americans participate in an employer-sponsored retirement plan and 62% of Iowa women reported an employer-sponsored plan like a 401(k) as a source for expected retirement income.
GAPS IN FINANCIAL LITERACY
But the survey also shows some problem areas — gaps in financial literacy and long-term financial planning — as demonstrated by these specific survey results focused on retirement planning:
- 56% of the Iowa women surveyed said they lacked confidence that they were making wise financial decisions when planning for retirement
- 42% of the women have saved 10% or less of their income each year for retirement, with 8% reporting that they have saved nothing
- 52% said a common cause of stress and anxiety related to retirement planning was not being able to afford long-term care
- Almost half of all Iowa female respondents were concerned about retirement money running out and more than half reported their household is not financially secure
In addition, 63% lacked knowledge about investments and/or the investment products that were right for them, and 30% of Iowa women struggled with trusting someone else to guide their decisions. On the insurance side, they questioned how much coverage they need and also lack knowledge about insurance products beyond the typical car and homeowner's insurance.
SURVEY SPECIFICS
AMPERAGE developed the survey instrument and recruited Iowa female participants age 25 or older to form a good representation of Iowa's female population for both age and household income. Results were collected by AMPERAGE between Nov. 6, 2020 and Nov. 13, 2020.
"Our goal was to assess the financial literacy of female Iowans and uncover how active they are in the financial management of their households," said Iowa Insurance Commissioner Doug Ommen, Iowa's state regulator who supervises all insurance and securities business transacted in the state of Iowa. "We also wanted to determine the level of knowledge that women have about financial topics and expose opportunity areas where more education is needed so we can help be a resource in those areas."
The 383 female respondents who completed the five-minute survey spanned three age groups: 25 to 44 years old, 45 to 64 years old, and 65 years and older. They identified their household income in one of three brackets: less than $50,000, $50,000 to $99,999, or $100,000 or more. The survey's goal was to collect a statically valid sample with a margin of error of approximately five percent, which is the industry standard.
CREATING A WOMEN'S FINANCIAL EMPOWERMENT SOLUTION
"Financial literacy is critical for women to gain financial independence and to secure a financial future," said Sonya Sellmeyer, IID consumer advocacy officer. "Our research study pinpointed a clear and present need for the Iowa Insurance Division to assist female Iowans who reported they want to learn more about retirement planning, investments and insurance. We want to help move more Iowa households into the realm of financial security."
To help close that gender gap in financial literacy and security, the Iowa Insurance Division created the new SmartHER Money program in early 2021. This new program, based on the research outcomes, strives to empower women to face their fears and anxieties about money, financial planning and investing, and seeks to give them the knowledge needed to increase their financial literacy, set financial goals, develop a retirement plan and achieve financial wellness and security.
The Iowa Insurance Division will launch its inaugural SmartHER Money Conference in Cedar Falls, Iowa, on Aug. 19, 2021. "This new conference is designed to provide much-needed tools, tips and knowledge required for female Iowans to make good decisions for their financial future and to assure that they have the best life possible in their retirement years," concluded Sellmeyer.
Survey results from the SmartHER Money Literacy Financial Research project will be used to create content for this conference and as a benchmark for future studies on the topic. To learn more about the SmartHER Money initiative and conference, survey results and key takeaways, visit SmartHER.Iowa.gov.
ABOUT IOWA INSURANCE DIVISION
The IID has general control, supervision and direction over all insurance and securities business transacted in the state and enforces Iowa's laws and regulations. The IID investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices. Consumers with insurance or investment questions or complaints may contact the IID toll-free at 877-955-1212 or visit http://www.iid.iowa.gov.
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Media Contact
Chance McElhaney, Iowa Insurance Division, SmartHER Money Program, 515-242-5179, [email protected]
Lori Davis, AMPERAGE Public Relations, 319-290-3780, [email protected]
SOURCE Iowa Insurance Division, SmartHER Money Program
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