UBS Study of Women Investors Reveals the “Divide and Conquer” Approach to Managing Finances is a Multi-Generational Problem

UBS Global Wealth Management today launched the first global Investor
Watch report of 2019, this time surveying women investors around the
world on their approach to their financial well-being. The report has
found that the traditional “divide and conquer” approach to managing
finances, where women typically take care of day-to-day expenses and men
take care of long-term planning, is leaving women ill-prepared to manage
key financial needs during critical moments in their lives, such as
divorce or the death of their partner.

The report, which surveyed nearly 3,652 high-net-worth (HNW) married
women, widows, and divorcees in nine markets including the U.S., found
that women’s deferral of important financial decisions to spouses
extended to all generations, from Millennials to Baby Boomers.

Among the key findings:

• Women are acutely aware of their long-term financial needs: The
  top three financial needs identified by the majority of women globally
  include retirement planning (76%), long-term care (72%), and insurance
  (68%)
• Yet few take the lead in managing their own long-term finances:
  Only 23% of women globally take charge of long-term financial planning
  decisions
• But do control or are highly involved with the short-term needs of
  their families, taking charge of day-to-day expenses (85%)
• Women continue to defer to their spouses for important financial
  decisions: More than half of women globally (58%) defer to their
  spouse to manage critical, long-term decisions for reasons ranging
  from “my spouse never encouraged me” to “my spouse knows more” about
  the topic
• And millennial women are even more likely to let men lead: Surprisingly,
  millennial women in the U.S. are even less likely to take charge, with
  56% of women age 20-34 deferring to their spouse, as opposed to 54% of
  women over 51 years of age
• This behavior can put women at risk financially during critical
  life moments: This lack of participation stands in contrast to the
  urgent calls of U.S. widows and divorcees (98%) to push greater
  financial involvement, and the clear benefits for women who do partner
  with their spouses such as increased confidence and lower stress levels

"When 58% of women around the world—including the next generation of
Millennials—defer to men on important financial decisions, we need to
ask why," said Paula Polito, Global Client Strategy Officer at UBS
Global Wealth Management. "This dynamic could go on for generations to
come, unless both men and women make a commitment to engage in financial
decisions together."

The Case for Couples to Work Together on Long-Term Investments

Many women are introduced to the important financial decisions that have
been made for them, during critical life moments such as divorce or the
death of a spouse. The study found that an overwhelming number of widows
and divorcees (74%) discovered negative financial surprises when they
were forced to take control.

According to the survey, the benefits for women who share
responsibilities for long-term financial planning are clear:

• 94% of women report higher confidence in their financial future
• 93% of women report fewer mistakes made with both involved
• 91% of women report being less stressed about their finances

The Risk of Not Being Involved

“As women around the world live longer, the likelihood of becoming
widowed or divorced increases. It’s critically important that women not
only understand, but are engaged in key, long-term financial decisions,”
says Jane Schwartzberg, Head of Strategic Client Segments at UBS Global
Wealth Management.

“Couples must recognize that sharing responsibility across all money
decisions actually yields a dramatically better and more sustainable
outcome than each partner handling one aspect alone.”

Explore more insights and read the full report: ubs.com/investorwatch

Notes to Editors

About the survey

As women’s life expectancies increase and divorce rates remain high,
more women may find themselves solely responsible for their own
finances. UBS Global Wealth Management embarked on research to gauge
women’s level of and satisfaction with their financial involvement. From
September 2017 to January 2019, UBS surveyed 3,652 women. Of these
women, 2,251 were married with at least $1m in investable assets. Others
(1,401) were either divorced or widowed. These women had at least $250k
in investable assets. UBS also conducted in-depth interviews with 71
female respondents. The entire global sample was split across nine
markets: Brazil, Germany, Hong Kong, Mexico, Singapore, Switzerland,
Italy, the UK and the US.

About UBS

UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. UBS' strategy is centered on our leading global wealth
management business and our premier universal bank in Switzerland,
enhanced by Asset Management and the Investment Bank. The bank focuses
on businesses that have a strong competitive position in their targeted
markets, are capital efficient, and have an attractive long-term
structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices
in 52 countries, with about 34% of its employees working in the
Americas, 34% in Switzerland, 18% in the rest of Europe, the Middle East
and Africa and 14% in Asia Pacific. UBS Group AG employs approximately
61,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).

About UBS Global Wealth Management

As the world's largest wealth manager, UBS Global Wealth Management
provides comprehensive advice, solutions and services to wealthy
families and individuals around the world. Clients who work with UBS
benefit from a fully integrated set of wealth management capabilities
and expertise, including wealth planning, investment management, capital
markets, banking, lending and institutional and corporate financial
advice.

© UBS 2019. All rights reserved. The key symbol and UBS are among the
registered and unregistered trademarks of UBS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190306005132/en/