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Reticence about financial planning hampers women, study finds

A new survey draws a line in the sand between those who are worried about the financial markets and those who aren't. Perhaps not surprisingly, the line is marked by gender.

By Lauren Lowrey - bio | email

Posted by Kate Oatis - email

TOLEDO, OH (WTOL) - A new survey draws a line in the sand between those who are worried about the financial markets and those who aren't.

Perhaps not surprisingly, that line is marked by gender.

MassMutual's Retirement Services Division, which conducted an online survey of more than 1,000 of its retirement plan participants between Nov. 15 and Jan. 15, reveals that while women and men were equally as optimistic relative to the market outlook, only 32.5 percent of women were confident in making their own investment decisions compared to 47.8 percent of men.

The fear could lead to a short-changed retirement for women.

"Their income isn't as large, their pensions aren't as large, their social security checks aren't as large -- and that scares them," said Rick Luedtke, a certified financial planner with Ameriprise Financial.

Also, while only 10.2 percent of surveyed participants currently work with a personal financial advisor, women are almost 25 percent likelier to already work with an advisor than men and are almost 20 percent likelier than men to seek help as a result of the recent economy.

Another factor affecting women's confidence is that they tend to live longer than men so their nest eggs have to last longer. They are also likelier to need long-term care support as they age. Women also take more time out of the workforce to take care of children or family members, which translates into smaller pensions or retirement accounts.

And there is an average earnings gap, with women earning 70 cents for every dollar men earn. Less income tends to lead to less savings.

However, the silver lining for women is that they "tend to be better investors," said Rita Mansour, a financial advisor with Thomas MacDonald Partners. "They really do because they tend to buy the things that they know, that they understand, that aren't too complicated. They also are more patient investors."

In fact, says Mansour: "Women tend to be more conservative in their investments. Men generally take more risks, but women like to be more calculated about that risk."

Luedtke agrees. "We have a lot of... single women as clients -- and it's a very common theme. They are more focused, they make decisions faster and they want to make sure they're doing the right thing."

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