Three-fourths of American women feel anxious about their retirement savings because of current economic conditions – yet only 15 percent of them have made major changes to their financial plans, according to a study released Dec. 16 from State Farm.

In fact, 41 percent of the women surveyed said they would rather go to the dentist than talk to their spouses about daily finances.

Despite their concerns about money, women aren’t likely to seek expert advice. Instead, they look for financial guidance from spouses (24 percent), parents (16 percent) or friends (13 percent). Only 12 percent consulted with insurance agents and 7 percent with accountants.

In the last six months, 65 percent of women have reconsidered their financial strategies, but most of them had not made changes significant enough to change future outcomes. Thirty-five percent conducted research, but ultimately didn’t do anything differently, and 37 percent only made small changes with little or no impact on short- or long-term financial performance, such as moving money from checking to savings accounts, according to State Farm.

“[The] survey uncovers that most women need to gain a deeper understanding of their financial situation and most need to get beyond just the basic tools like 401(k)s to ensure financial stability,” said financial expert and author Stacey Tisdale. “With the economic crisis intensifying, it’s more important than ever for women to take action. They may want to seek advice from professionals like financial planners and insurance agents as they get their finances in order.”

Many women don’t have adequate savings, even though most women said they know it’s important to be prepared for the future. Nearly one-third (31%) of women report having only enough money to cover a month’s worth of expenses – or less.

“While the market downturn is out of their control, there are feasible steps they can take to address their personal situation,” Tisdale said. “Women need to reduce spending and increase savings now.”

What Women Can Do Today

Women (and men) can take the following simple steps toward a more secure financial future:

• Review credit cards and checking accounts to assess all purchases, large and small, and tally where money is spent. Then, prioritize to identify where to cut expenses.
• Calculate monthly expenses and make sure to have enough money in savings to cover at least three months of costs.
• Seek financial advice from an expert to ensure financial plans are secure.

Financial IQs

The State Farm survey ranked women’s Financial IQs in the following categories:

• Short-Sighted Spenders (33 percent of women): These individuals feel lost when it comes to finances and aren’t sure how to get themselves on track.
• Mediocre Money Managers (31 percent of women): They are unsure of their financial planning abilities and are uncertain about their future security.
• Set-For-Life Savers (36 percent): These women are well-informed and confident about their finances and feel adequately prepared for any economic challenge they may face down the road.

Copyright 2008, BadgerBoomers.com

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