State Farm® Survey Identifies the State of Women’s Financial Confidence; Findings Indicate Many Women Have Yet to React to Today’s Economy
December 16, 2008, Bloomington, Illinois – If ever there was a time for American women to get their financial plans in order, it’s now. However, even the current economic crisis isn’t enough to drive some of them to take real action and responsibility for their finances. State Farm® released findings of a national survey today revealing that while almost three-fourths (74%) of American women feel anxious about their retirement and financial futures due to the recent economic decline, only 15 percent have made major changes to their financial plans. State Farm conducted the survey to understand how women are responding to today’s tough economy and what they know about planning for their family’s financial future.
Key findings from the survey show that 65 percent of women have reconsidered their financial strategies within the last six months; however most of them have not made changes significant enough to ensure their futures. 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.
When women look for financial guidance, they don’t always seek out expert advice. The survey showed many women turn to their spouses (24%), parents (16%) or friends (13%) for financial advice, while fewer are likely to turn to the experts, including insurance agents (12%) or accountants (7%). But then again, many women don’t jump at the chance to talk about money. More than two in five (41%) find going to the dentist less excruciating than talking to their spouses about their daily finances.
“The State Farm survey indicates that women are more aware of their retirement needs, however, too many of them are not taking the necessary actions to secure their financial futures,” said Susan Waring, executive vice president and chief administrative officer of State Farm Life Insurance Company. “In these worrisome times women need to talk to someone they trust. Financial planners or insurance agents can help them find the best solutions for their families or their individual needs.”
To understand how to better equip women during this tough economic time, State Farm determined their financial IQs by examining their attitudes and perceptions regarding their financial situations and overall confidence in their financial security. On a 10-point scale, respondents fell into three distinct groups:
“State Farm’s 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 401ks to ensure financial stability,” said financial expert 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.”
Further complicating the situation is the fact that many women aren’t prepared for a rainy day. Nearly one-third (31%) of women report only having enough money in their savings to cover one month – or less – of expenses. More than eight in ten (82%) women feel it’s important to be adequately prepared for the future; however, more than two in five (41%) suspect they’re falling short, worried that they haven’t done enough to secure their financial futures.
“While the market downturn is out of their control, there are feasible steps they can take to address their personal situation,” said Tisdale. “Women need to reduce spending and increase savings now.”
State Farm advises women to act now and take the following steps to ensure their financial profiles are ready for the unexpected:
Women who need help solidifying their financial plans can visit www.statefarm.com to get additional tips or locate an agent that can assist them with a variety of insurance and financial services.
Additional Resource:
What Women Want in Life Survey Top Line Results (PDF 701 KB)
For questions or more information, contact Carol Carey-Odekirk, Relaciones Públicas, al (309) 766-6781 o Katie Poorman, GolinHarris at (312) 729-4124.
About the Financial Survey
State Farm's survey was conducted by Kelton Research between Nov. 7-13, 2008 using random digit dialing of listed and unlisted numbers. Quotas were set to ensure reliable and accurate representation of the total U.S. female population ages 25-65. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of percentages expressing results.
In this particular study, the changes are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
To view the complete survey results, questions and methodology, please visit www.statefarm.com.
State Farm Life Insurance Company (Sin licencia en Mass., N.Y. o Wis.);
State Farm Life and Accident Assurance Company (Con licencia en N.Y. y Wis.);
Sede central, Bloomington, Ill.
State Farm International Life Insurance Company Ltd.
Aurora, Ontario
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State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,000 agents and 68,000 employees serve about 80 million policies and accounts: more than 78 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.