Lincoln Financial's Consumer Sentiment Tracker - A proprietary monthly study of consumer sentiment, attitudes and priorities - Newsroom
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Lincoln Financial’s Consumer Sentiment Tracker A proprietary monthly study of consumer sentiment, attitudes and priorities A Special Focus on Women
Research Methodology Lincoln Financial’s Consumer Sentiment Tracker Study The goal of this ongoing monthly research is to gauge consumer sentiment across multiple financial topics. Responses for the focus on gender were gathered 7/1/2020 – 12/15/2020 using the Qualtrics survey platform. Responses were collected from a total of 6,329 U.S. Adults, including Women (n=3,187), and Men (n=3,076). The sample included quotas to be representative of the total U.S. adult population.
Executive Summary
Key Headlines
• Pandemic-related job losses hit women particularly hard, • U.S. consumers agree that now is a good time to focus on
compounding the age-old gender income gap issue. financial planning basics—decreasing spending and increasing
savings.
– More than 2.1 million women have left the workforce since February 20202
– Women are more focused on decreasing their spending, while men are more
• The pandemic is negatively impacting women's financial wellness. motivated to increase savings.
– Women are more worried about making ends meet and are concerned that they • The pandemic shifted investors’ focus to making sure
don’t have enough “know-how” to manage their finances.
emergency savings accounts are well-funded – drawing
– Saving for emergencies is a much more important goal for women in the current attention away from other investment priorities.
environment.
• Hard-hit women are responding to job losses and insecurity by
• Men express more positive feelings—hopeful, interested and focusing on day-to-day necessary actions including holding off
opportunistic—when it comes to financial planning. on making major financial decisions and reducing spending.
– Women are expressing the highest levels of stress and anxiety. – Men, on the other hand, are more likely to take more strategic long-term
actions like increasing investments, talking to an advisor and purchasing
• Women feel less empowered about their financial future—a lack of financial products.
financial planning and investment knowledge, combined with fewer
seeking professional advice contributes to their outlook. • As consumers navigate the post-COVID19 financial landscape,
professional advice and self-education go hand-in-hand—
• The events of the past year are impacting the mindset of financial professionals and websites are the top sources for
consumers—with more women agreeing that they are planning to financial product information.
make permanent changes to the way they save and spend as a – Women are more likely to do their own research, look at websites and speak
result of the COVID-19 pandemic. to family/friends; while men prefer to seek out professional advice.
©2020 Lincoln National Corporation 3
Sources: Lincoln Financial, Monthly Consumer Sentiment Tracker, July - Jan 2021
2Bureau of Labor Statistics
COVID19: Impacts Across Gender [Audience disclosure goes here…] ©2020 Lincoln National Corporation 4
The gender income gap is substantial
Pandemic job losses hit women particularly hard, compounding the age-old
issue of household income that skews significantly lower than that of men. According to the Bureau of Labor
Statistics, more than 2.1 million
women have left the workforce
completely since February 2020
Total Household Income Last Year
How has your job been impacted by the recent COVID-192
Less than $25K 28%
35%
$25K - $49K 25%
Women 65% 13% 22%
$50K - $74.9K
28%
$75K - $99.9K
$100K - $149.K Men 72% 12% 16%
17%
$150K - $199.9K
9%
0% 20% 40% 60% 80% 100%
$200K or more
Working as usual Working, but reduced hours / pay Not working
7%
Total (n=6,328) Women (n=3,187) Men (n=3,075)
Sources: Lincoln Financial, Monthly Consumer Sentiment Tracker, July - Jan 2021 ©2020 Lincoln National Corporation 5
2CivicScience, COVID Tracker Survey, Women (n=117,869) Men (n=117,199)Women hit particularly hard financially amid pandemic
Both men and women have similar financial concerns, although women are currently more concerned with being able to
cover day-to-day expenses, while men are more concerned with long-term financial issues like the impact of taxes, stock
market volatility and long-term-care expenses.
Top Concerns as a Result of the COVID-19 Pandemic Top 10 Financial Concerns
0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Women are concerned Having enough money/income in
Not having enough emergency savings 45% with lack of retirement
emergency savings
Not being able to cover basic expenses like and covering basic
mortgage/rent, utilities, food and water 34% expenses Paying for healthcare expenses
Being able to cover unexpected non-
Cybersecurity and protecting against fraud
medical expenses 61%
Income due to layoffs, pay cuts, reduced
My taxes increasing
hours, etc. 56%
Decreased value of investments due to Supporting myself or family if I become
stock market volatility or interest rate… disabled
Feeling like I don’t have enough know-how
to manage my finances 25% Inflation
Having enough money to cover large
Feeling uncertain about how to invest
26% purchases/expenses
Not being able to save enough for Having enough money to cover day to day
retirement living expenses
Not being able to keep up with debt
payments 23% Outliving my money
Making sure my family does not have to
None of the above
17% worry about paying for my funeral expenses
Total (n=1,060) Women (n=533) Men (n=517) Total (n=1,811) Women (n=968) Men (n=825)
©2020 Lincoln National Corporation 6
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021A third of women report that they are barely getting by
About a third of both men and women report their personal financial situation as “stable.” However, women are much
more likely to say they are “barely getting by,” while men say they are “comfortable.”
Thinking about your personal financial situation, are you...
40%
35% 33%
31%
30%
25%
20%
15%
10%
5%
0%
Barely getting Comfortable In trouble No change Stable Very well off
by
[Audience disclosure goes here…] ©2020 Lincoln National Corporation 7
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Stress & anxiety levels remain high
Women are expressing high levels of stress and anxiety when it comes to financial
planning in the wake of COVID-19.
Feelings Towards Financial Planning
39%
Positive feelings like hopefulness, interested 40%
40%
and opportunistic are highest among Men
32%
30% Negative feelings like stressed, sad and
30% 30%
26% anxious are highest among Women
25%
21%
20% 18% 20%
16%
12% 11% 11%
10%
9% 10%
6%
0% 0%
Total (n=6,328) Women (n=3,187) Men (n=3,075)
©2020 Lincoln National Corporation 8
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Women are still struggling to increase their financial acumen
A third of women report that they sometimes feel stupid when asking questions about financial matters.2
Level of familiarity with financial planning Currently work with a financial professional in any capacity
and investments
Men
58% 42%
Men
90% 10%
Women are 2.5X more likely
to be unfamiliar with
financial planning and
investments than men
Women
Women
75% 25% 74% 26%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Familiar Not at all familiar No Yes
Women (n=3,187) Men (n=3,075)
[Audience disclosure
Sources: Lincoln Financial, Monthlygoes here…] Sentiment Tracker, July-Jan 2021
Consumer ©2020 Lincoln National Corporation 9
2Strategic Business Insights, MacroMonitor, 2020-2021Women feel less empowered about their financial future
Men are much more likely to say they are increasingly reading and learning about
financial markets and investing, and are more open to advice.
80% 80%
72%
70% 70%
65% 64%
60% 56% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
I’m looking for ways to better I’m increasingly thinking about I’m doing an ok job planning for my I’m increasingly looking for and am I’m increasingly reading/learning I’m increasingly thinking about
protect me and my family financially potential unexpected costs I might financial future, but can still use open to financial planning advice about financial markets and whether I have the right insurance
have to bear (healthcare, inflation, help investing
taxes, etc.)
Total (n=1,805) Women (n=755) Men (n=1,032)
©2020 Lincoln National Corporation 10
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Yet, the pandemic has caused a shift in mindset…for all
The events of the past year impacted the mindset of Americans—with women planning to make
permanent changes to the way they save and spend as a direct result of the pandemic.
Greater focus on day-to-day finances
80% for women than men right now. 80%
71%
70% 66% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
I am planning to make permanent changes to the way I am thinking differently about planning for my I am thinking differently about my employer as a Right now, I'm more focused on day-to-day finances
I spend and save money as a result of what I have financial future as a result of the COVID-19 crisis result of the COVID-19 crisis than planning for the future
experienced during the COVID-19 crisis
Total (n=1,805) Women (n=755) Men (n=1,032)
©2020 Lincoln National Corporation 11
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Back to Basics
U.S. consumers agree that now is a good time to focus on financial planning basics—it is no surprise that
women are first and foremost decreasing their spending. Men are increasing their savings and are far
more likely to think now is a good time to purchase financial products and increase investments.
0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70%
Decrease spending 58% Purchase a financial product that offers
protected lifetime income 31%
Increase savings Purchase a financial product that protects
50% your investments against market
downturns 32%
Increase contribution to your retirement
plan
Diversify your investment portfolio
31%
Pay down debt
Increase investments in products that
provide tax deferred growth 28%
Create or update a will or estate plan
Purchase a long-term care insurance policy
Reevaluate the employee benefits you 26%
enroll in at work
Increase coverage on an existing life
Evaluate your life insurance coverage from insurance policy
your employer 23%
Speak with a financial professional or Purchase a new life insurance policy
advisor 23%
Total (n=6,328) Women (n=3,187) Men (n=3,075)
©2020 Lincoln National Corporation 12
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021First Things First - A Focus on Emergency Savings
The pandemic shifted investors’ focus to making sure emergency savings accounts were well-
funded—drawing attention away from other investment priorities.
Post-COVID 19 – The Importance of Funding
Net Increase = % Increased
Total Women Men
Emergency or rainy-day savings Emergency or rainy-day savings Emergency or rainy-day savings
account +34% account +34% account +33%
Long-Term Care funding plan Long-Term Care funding plan Long-Term Care funding plan
(e.g. insurance policy, savings,… (e.g. insurance policy, savings,… (e.g. insurance policy, savings,…
Retirement savings account Retirement savings account Retirement savings account
(401K, 403B, etc.) (401K, 403B, etc.) (401K, 403B, etc.)
Life insurance Life insurance Life insurance
Individual Retirement Account Individual Retirement Account Individual Retirement Account
(IRA – traditional or Roth) (IRA – traditional or Roth) (IRA – traditional or Roth)
Brokerage account (stocks, Brokerage account (stocks, Brokerage account (stocks,
bonds, mutual funds) bonds, mutual funds) bonds, mutual funds)
Annuity Annuity Annuity
Total (n=3,731) Women (n=1,622) Men (n=2,075)
©2020 Lincoln National Corporation 13
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Women are enduring current financial hardships by
making necessary day-to-day financial decisions
Delaying major purchases and drawing down emergency funds are top actions reported by women.
Financial Actions -- Past 90 Days
35% 40%
35%
30% 35%
30%
25%
24% Men are taking more long-term strategic financial actions
25%
20% 21%
18% 20%
15%
13% 15%
10% 9%
7% 8% 10%
6% 6%
5% 5%
0% 0%
None of the Decided to delay Used funds from Increased Filed for Contacted your Bought life Decided to delay Contacted a Decided to retire Bought an Bought long-term
above major purchases a rainy day or contributions to unemployment financial advisor insurance retirement financial advisor earlier than annuity care insurance
(home, car, etc.) emergency retirement benefits to discuss your for the first time expected
savings account savings account investments
(e.g., 401k, IRAs)
Total (n=6,328) Women (n=3,187) Men (n=3,075)
©2020 Lincoln National Corporation 14
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Professional advice and self-education go hand-in-hand
Websites and family/friends are the top sources for financial product information, followed closely by
financial professionals. Women are more likely to do their own research, looking at websites and speaking
to family/friends; while men prefer to seek out professional advice.
Preference to Learn About Financial Products
60% 60%
50% 48% 49% 50%
42%
40% 37% 40%
32%
30% 30%
20% 20%
10% 10%
0% 0%
Websites Family/friends/colleagues Financial professional Financial services companies My employer Personal finance Other (please specify)
publication/broadcast
©2020 Lincoln National Corporation 15
Source: Lincoln Financial, Monthly Consumer Sentiment Tracker, July-Jan 2021Contact:
Holly Fair
Director, Corporate External Communications
Holly.fair@lfg.com
484-583-1632
For more
information
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its
affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and Lincoln
Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-
dealer/affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities and investment
advisory services offered through other affiliates. Affiliates are separately responsible for their
own financial and contractual obligations.
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