Women may run the household finances, but are they sufficiently involved in planning for their long-term financial future?
The 12th annual TD Women Investor Poll found that half of Canadian couples share responsibility for most household finances, but among couples where responsibilities are divided, women are more likely to handle day-to-day finances, while men are more likely to manage the investments and long-term retirement planning.
Fewer women than men said they are responsible for managing investments (32% vs. 49% respectively), dealing with financial professionals (33% vs. 44% respectively) and planning for retirement (30% vs. 38% respectively). Women were more involved than men in household budgeting and spending (49% vs. 24% respectively) and paying bills (58% vs.49% respectively).
"There are several barriers that women tell me they face when it comes to managing their family's financial future," says Sandy Cimoroni, president, TD Mutual Funds, and executive sponsor of TD's Women Investor Strategy. "Many women say that they just don't have time to dedicate to managing their investments, or they feel they don't have the knowledge that they believe is necessary to make sound investment decisions."
When asked to define financial success, both men and women define it as having enough money saved to have a comfortable retirement (women: 80%, men: 74%). However, only approximately one-third say they feel very well-prepared when it comes to their retirement savings, with more men than women feeling well-prepared (men: 34%, women 27%).
"Our research showed that women are less likely than men to feel that they are financially successful or on track to reach financial success. In fact, only 60% of women felt financially successful or on track to reach financial success, compared to 68% of men," says Kim Parlee, vice president, TD Wealth Management. "While it's essential to plan and save, it's also really important to feel confident about your investments and the progress you're making towards your financial future. Mapping out your financial goals for retirement, and your strategy to help you meet them, can help increase your confidence."
TD Bank Group commissioned Environics Research Group to conduct an online custom survey of 2,014 men and women. All respondents have investable assets and sole or shared responsibility of the household financial planning or investment decisions. Responses were collected between August 24 and 30.