More women embracing family CFO role – but still feel financially insecure

As women slowly but steadily shift toward greater financial autonomy, they increasingly are assuming the role of primary financial decision-makers within their households – and they need support from advisors.

That’s according to a recent study by Allianz Life Insurance Co. of North America, which drew from an online poll of 900 women ages 25 to 75 with an annual household income over $30,000.

The 2023 Women Money Power Study highlights a growing trend of women who identify as the chief financial officer of their family, with 49 percent of respondents embracing this role, a notable rise from 41% in 2021. The trend is even more pronounced among married women, where adoption of the label increased from 34 percent in 2021 to 43 percent in 2023.

The study also sheds light on generational differences in financial responsibility, with Gen X women (54 percent) leading the charge, followed closely by millennials (51 percent) and baby boomers (41 percent) in self-identifying as CFOs of their household.

As women increasingly take financial leadership, more are also becoming the main breadwinners for their family. On that score, Allianz Life reported a jump from 34 percent in 2021 to 43 percent in 2023, with millennial women at the forefront (51 percent).

But paradoxically, the study also found women feel less financially secure now than in the past. Just under two-thirds of women reported feeling financially secure (64 percent) – a decline from 72 percent in 2021 – with married women feeling the most secure (73 percent).

The insecurity extends into retirement planning for women, with only 52 percent saying they feel confident about their current retirement strategies. The anxiety is particularly acute among divorced women, with just 38 percent expressing confidence in their retirement plans.

The study also reveals a shift toward financial independence and savvy among women, with 51 percent considering themselves more financially knowledgeable than their partners, an increase from 46 percent in 2021.

This independence is reflected in how women manage their finances and collaborate with their partners on financial decisions, with a significant portion of women, especially millennials, preferring to keep their finances separate.

The study also indicates an important connection between women’s financial security and professional financial advice. One in three women (33 percent) now have a financial professional, up from 26 percent in 2021, with a strong majority valuing their advisor as their primary source of financial information.

The sentiment that engaging a financial professional earlier would have been beneficial is widespread, with three-quarters of women expressing this wish.

“Women are holding more economic power and yet they still lack financial confidence,” Heidi Vanderkloot, Allianz Life’s head of FMO distribution, said in a statement. “The guidance of a financial professional can help women define a long-term financial strategy to increase that sense of confidence.”