Wealth strategies for women who are primary earners

Women today are contributing more to their household incomes than ever before, and the share of women who earn more than their husbands has grown significantly.¹ Thirty percent of high-earning women in heterosexual couples in the U.S. surveyed by UBS are the primary earners in their households. Yet less than half of women primary breadwinners said they prefer that role, and many face unique challenges.²

For women who are a part of this growing group, the challenges that come from being the breadwinner can have implications for how they have financial conversations with their spouses, the ways in which they work with a financial advisor and how they participate in important financial decisions.

Our research shows that many women breadwinners say friends and family often assume that men are the primary earners in heterosexual relationships. And about half of women primary earners surveyed say they haven’t corrected them.

On top of this misconception, UBS research shows that women primary breadwinners also have to navigate their own partners’ insecurities about not being the primary earner. About two-thirds of men (66%) who earn less than their female spouse wish their roles were reversed. What’s more, whether primary earners or not, women report that they are likely to take on more of both childcare and household responsibilities.

Altogether, these challenges can prevent women from taking an active role in financial planning and investing. In fact, only about half of the primary earning women surveyed by UBS said they handled major household financial decisions like where to invest or how to manage debt. Doing so, however, can empower women to take greater control of their financial lives and help determine their family’s financial future.

According to a UBS survey, the top financial priorities for women breadwinners are retirement planning, maintaining an emergency fund, tax planning, budgeting and long-term care planning.² In addition to addressing these priorities, it’s important to work with an advisor to secure enough cash flow for both planned and unexpected expenses in the next three to five years. A sound plan also accounts for recurring expenses like utilities and taxes and bigger, one-time expenses like vacations or new homes.

It’s also important for women breadwinners to plan for their legacy. For instance, insurance planning can help families maintain their standard of living in the event of the unexpected. And working with a financial advisor to create an estate plan can help them provide for their families today and support future generations.

Women primary earners should work with their financial advisor to create an investing strategy that aligns with their specific needs, goals and risk tolerance. This strategy should feature a diversified portfolio that includes liquidity to meet short-term needs, longevity to meet long-term needs, and legacy planning to meet the needs of their family and other beneficiaries. Women also tend to have longer life expectancies, meaning that certain portfolio decisions with a focus on long-term growth opportunities may be a good way to build wealth over time.

As more women contribute even more to their households’ incomes, it’s important for women breadwinners to take control of their financial future by creating a balanced financial plan that includes an investment strategy customized for their individual situation. 

Women primary earners may want to look for a UBS Financial Advisor near them to help create a plan that meets their specific needs and help them navigate and overcome some of the unique barriers they may face on their financial journeys.