Women encounter heightened financial and physical strain
Women are grappling with higher levels of financial stress compared to men, according to a recent study conducted by the Guardian Life Insurance Company of America. This financial stress is a leading barrier to achieving well-being goals for nearly half (54%) of women, impacting both their mental and physical health.
Despite women being primary financial decision-makers in 69% of households, only 29% of women say they manage their finances well, compared to 37% of men. Moreover, only one-third of women rate their physical health as good, and a mere 11% say they are taking excellent care of their mental health.
The study reveals that women's financial stress is primarily due to lower financial confidence and gendered economic disadvantages. Although women's objective financial knowledge is similar to men's, women report significantly lower financial confidence, with scores of 58.2 compared to men's 72.1. This confidence gap, rather than a lack of knowledge, drives women's higher financial stress and inhibits them from effectively managing finances.
Women are more likely to live in poverty or poor households, particularly during their prime working age (25-34), often due to household economic structures where women are non-income earners or have caregiving roles. This increased financial vulnerability and stress contributes to heightened physical and mental health impacts for women, with only 26% reporting good financial well-being and higher overall psychological distress compared to men.
Financial stress directly correlates with poorer mental health outcomes, although some demographic groups show resilience. However, overall, women’s greater financial stress contributes to worse mental health and well-being relative to men.
Single mothers and caregivers experience the highest levels of financial distress and the lowest wellness ratings. Over half (55%) of single mothers rate their financial health as fair or poor, which is higher than the 38% average among all women. Similarly, 44% of female caregivers rate their financial health as fair or poor.
The findings suggest a broader financial struggle affecting nearly every facet of women's lives. The cost of living, paying off debt, and saving for retirement are other top financial stressors affecting women.
Erin Culek, Guardian's Head of Financial Protection & Retirement Solutions, states that financial stress has an outsized impact on overall well-being. She emphasises that addressing this requires targeted interventions to boost women's financial confidence alongside improving economic opportunities and support systems.
Working with a financial professional can help improve financial confidence and support women in their pursuit of physical and mental well-being goals. Only 28% rate themselves as good at eating healthily, and only 26% feel they get adequate exercise. Therefore, taking a holistic approach to well-being, including addressing financial stress, is crucial for improving women's overall health and well-being.
The gender gap is evident across multiple well-being indicators, including financial health and management. As a result, it is essential to recognise and address the unique challenges women face in achieving financial well-being and overall wellness.
Women's financial stress, rooted in lower financial confidence and gendered economic disadvantages, negatively impacts their mental and physical health, making it important to enhance women's financial confidence for better well-being. Improving financial management and seeking help from financial professionals can contribute to achieving health-and-wellness goals, including mental-health and womens-health, which are often compromised by financial stress.
