A new study has revealed that financial anxiety is disproportionately affecting female professionals globally, with younger women experiencing the most significant levels of stress.
The study, commissioned by nudge Global, highlights stark gender disparities in financial outlook and security, further exacerbated by the persistent gender pay gap. Globally, 50% of women across various age groups report experiencing financial anxiety, compared to 41% of men.
“When it comes to financial planning and stability, women face numerous challenges that men do not,” stated Grace Massey, Chief Marketing Officer at nudge. “Despite the evolving cultural dynamics, the gender pay gap remains a significant barrier, with women earning 24% less than men on average. This disparity forces many women into a delicate balancing act, managing financial responsibilities alongside family planning and childcare decisions, leading to heightened anxiety and insecurity.”
The findings are part of the annual Financial Wellbeing Report by nudge, which surveyed over 11,500 employees worldwide. The report found that 45% of women in the US aged 25-34 feel anxious about their financial situation, compared to 39% of men in the same age group. Additionally, 69% of men in this age bracket feel hopeful about their financial future, contrasted with only 58% of women.
FINANCIAL WELLBEING CHALLENGES
This trend extends beyond the US. In the UK, 67% of women aged 25-34 report financial anxiety, compared to 43% of men. Similarly, in Japan, 67% of women in the same age group are anxious about their finances, compared to 44% of men.
The report also uncovered differences in financial planning approaches between genders. Over half (54%) of women aged 25-34 admitted to having only short-term financial plans, typically three years or less. In contrast, 52% of men in this age group have established long-term financial plans exceeding three years.
“These disparities highlight the varying capabilities of individuals to navigate financial wellbeing challenges,” noted Andrew Mulder, People Director at nudge. “Employers have a crucial opportunity to understand these underlying issues and support women in building long-term financial security, fostering greater optimism about their futures.”
Download the full report here.
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