New UBS report reveals that joint financial participation is the key to gender equality

by
UBS Switzerland AG
My articles My siteMy booksMy videos
Follow on:Twitter

• Significant majority of men and women believe women need to be equally involved in long-term financial decisions to achieve true gender equality, yet half of women let their spouses take the lead
• COVID-19 has worsened inequalities, with women more focused on household duties and men more focused on finances
• Despite pre-marital intentions, millennial women are most likely to defer financial decisions to their spouses

New York, July 6, 2020 – According to UBS Global Wealth Management’s latest Own Your Worth report, 74% of men and 82% of women see joint participation in long-term financial decisions as a necessary step to create gender equality. The report, which surveyed 1,825 high-net-worth investors in the US, found that a significant majority believe equal participation helps women to feel financially secure, avoid future financial surprises, and feel more secure about leaving bad relationships.

Yet nearly half of women (49%) defer to their spouses, with millennials most likely to do so. Women cite a variety of reasons, from a lack of confidence to a desire to keep the peace, to entrenched roles—a dynamic further complicated by COVID-19.

“With the important focus on gender equality, it’s surprising that more women—particularly younger women—don’t participate equally in decisions that will impact their future so profoundly,” said Paula Polito, Divisional Vice Chairwoman of UBS Global Wealth Management. “The pandemic made clear the inextricable link between health and wealth, and women are paying more attention to their financial well-being as a result. Hopefully, this awareness will lead women to engage more meaningfully in their financial wellness.”

The pandemic has reinforced traditional gender stereotypes between men and women

Amid the pandemic lockdowns, most women took the lead on domestic duties, such as homeschooling (64%) and childcare (60%). Most men took the lead on yard work (58%) and managing finances (71%).

As a result of the pandemic, however, women are increasingly focused on their financial future, with over 80% wanting to protect themselves and their families more than ever before. Yet, there is a gap between intentions and actions. One third of women have reviewed their financial situation, while 40% are considering it, but have yet to do so.

While single millennial women intend to participate equally in financial decisions, once married they defer to their spouses

The vast majority of single millennial women (88%) envision participating equally in long-term financial decisions with their spouses or taking the lead after marriage. However, once they are married, millennial women are more likely than other generations to defer to their spouses on long-term financial decisions (54% of millennials vs. 39% of boomers).

Millennial women cited a number of reasons they defer to their spouses, including that they “have no idea where to begin,” their “spouse knows more about finances,” or they are “focused on other tasks.” Six in 10 (58%) admit they simply want to be taken care of.

This report was featured in a recent webcast on women and the path to financial independence hosted by UBS’s Paula Polito, with moderator Tina Brown, and speakers Billie-Jean King, Lisa Leslie, Paulina Porizkova and others. Watch a replay of the full event here: https://www.ubs.com/microsites/client-segments/en/own-your-worth/home.html.

You Might Also Like

SWISS slowly expands web of destinations from Zurich and Geneva

Swiss International Air Lines (SWISS) has published its flight schedules up to October 24, the end of the summer timetable. As well as resuming service to more network destinations, it plans to intensify its frequencies on routes already restored in both its short-haul and long-haul networks.

Coronavirus: Swiss government makes masks compulsory on public transport

On 1 July 2020, Switzerland’s federal government announced that it would become compulsory to wear masks on public transport from 6 July 2020. Due to the the growing number of people using public transport and a rise in the number of people testing positive for SARS-CoV-2 since mid-June, the Federal Council has decided to make it compulsory for those taking public transport to wear a mask.

Swiss government extends coronavirus economic support

The Federal Council is extending short-term unemployment benefits by another six months and plans to help cushion financial losses faced by public transport. On Wednesday, the government announced that it is extending the maximum period for receiving partial unemployment support from 12 to 18 months to counteract a rise in unemployment.

Swiss salaries rise faster than inflation for the first time in 2 years

In 2019, Swiss salaries were on average of 0.9% higher than the year before. A nominal rise of +0.9% combined with low inflation of 0.4% delivered a real boost of 0.5% to someone earning an average salary in Switzerland.

Swiss retail sales up 30 percent in May after COVID-19 measures eased

Recently published figures show a overall jump of 30.2% in retail sales in May 2020 compared to April 2020. May’s rise of 30.2% follows falls of 6.5% in March and 13.7% in April.

New cars on Swiss roads failed to meet emissions targets

Fuel consumption and emissions limits for new cars in Switzerland missed their target in 2019 for the fourth year in a row. This resulted in sanctions totalling CHF78 million for car importers.

Novartis pays big fine for bribing doctors in the US

Swiss pharma company Novartis will pay $729 million (CHF688 million) to US authorities in an out-of-court settlement over various charges, including that the company bribed doctors to use its drugs.

Fewer cows, more cars: Switzerland misses its emission targets

Switzerland’s emissions have declined over the last 30 years, but not enough to meet the national targets set for 2020. What’s behind the gap? By 2020, greenhouse gas emissions in Switzerland should be down by 20% from what they were in 1990. That’s the target outlined in the federal CO2 law.