OppenheimerFunds, Inc. Annual Survey Finds: Trend Emerging as Gap Between Men and Women Sharing Financial Tasks Narrows

NEW YORK, Jan. 2 /PRNewswire/ -- In 2006, men and women spent more time working together on household financial tasks such as paying the bills, balancing the checkbook and buying and selling investments, according to a new national survey. Results of OppenheimerFunds' 2006 Women & Investing Survey(1), indicate that 40% of respondents (men and women) manage the household budget, update the will and teach children about money together. These numbers represent a significant increase from approximately 30% of respondents who answered the same way in 2005. In addition, 50% of respondents said they share responsibilities for saving and investing for retirement and the vast majority (80%) believe it is necessary to discuss investment decisions with their spouse.

"While overall results for these categories showed that the majority of women are still in charge of the financial "chores" around the house, the needle is moving in the right direction," says Lauren Coulston, Assistant Vice President, Advocacy and Training Manager at OppenheimerFunds. "We are particularly pleased to learn that women are moving beyond tasks such as balancing the checkbook and increasing their role in saving and investing for retirement. Studies show that roughly nine in ten women will be solely responsible for their finances at some point in their lives due to longer life expectancies and it's critical for them to be familiar with all aspects of the household finances."

Women Spend Like There's No Tomorrow -- Credit Card Debt a Major Issue

The majority of women surveyed -- 60% -- have over $5,000 in household debt and nearly 30% said they have over $20,000. When asked what type of debt women carry, 60% listed credit card debt followed by installment loans (24%) and line of credit (22%).

"What's most concerning about these findings is that the majority of women surveyed are over the age of 45, and at that age they should be allocating as much of their earnings as possible towards retirement savings, not paying high interest balances on credit cards," says Coulston.

When it comes to retirement savings, women say one thing and do another

Most of the women surveyed (72%) said retirement is their primary investment goal, yet nearly half of the women surveyed (48%) do not participate in a retirement savings plan and 60% said they have not taken the necessary steps to prepare for retirement. What would motivate women to start saving for retirement? When asked, 47% of women said knowing that saving $50 a month over several decades would provide them with more than $500,000 when they retire. Another 40% said learning how to manage debt better and 35% cited learning how to cut back on spending. When given the option of buying the latest technology or saving for retirement if they had $100 to spare, the majority of women (72%) said they would save for retirement.

"We have been conducting research on women and their relationships with money since 1992 and have seen a consistent disconnect between women's desire to save for retirement and taking the steps necessary to achieve those goals," says Coulston. "We also know that women are multi-taskers -- many support adult children and parents -- which can keep them focused on the task at hand vs. long-term savings goals. Working with a financial advisor makes women feel more confident about having enough money for the future and generally more knowledgeable about investing. Currently only two in ten women are working with an advisor and we would like to see that number increase."

  Other key findings ...
  * Thirty seven percent of women admit to maintaining a separate checking
    or brokerage account from their spouse.
  * For couples who chose to merge their assets, only thirty percent of the
    men and women surveyed agreed that it's necessary to work with a
    financial advisor before doing so.
  * Over 70% of women expect to live to be 80 or more compared with nearly
    65% of men. Seventy percent of women also say they will outlive their
    spouse compared to 40% of men.
  * Thirty percent of women and men expect to support adult children and
    their parents financially.
  * The majority of women (66%) and men (56%) believe children should start
    to learn about money under the age of 10.

  Financial New Year's Resolutions For 2007
  * Know what you have to work with -- Gather your bank statements, bills,
    investment accounts and retirement accounts and figure out your net
    worth. What is your annual cash flow, income and other revenue, and how
    much are your total expenses? Knowing how much money you have is a
    critical first step to building a financial plan.

  * Work with a Financial Advisor -- Women should work with a financial
    advisor to come up with an objective, reality based plan to tell them
    where they are and where they are headed if they stay on the current
    course of saving and spending. Women tend to be focused on the present
    and haven't given much thought to how they will finance their future.
    Advisors can help women take a look at their unique implications, such
    as long life expectancy, the impact of inflation, potential issues
    associated with relying on a spouse's pension or health benefits, the
    timing of Social Security and Medicare benefits, and the dangers of
    carrying too much debt.

  * Set Very Specific Short and Long Term Goals -- Women, much more so than
    men, are extremely goal oriented, and need to understand that retirement
    and healthcare need to be their #1 long term priorities.  Women also
    respond well to detailed action steps complete with specific dollar
    amounts so planning for both short and long term goals can help them
    succeed in the future.

  * Start Saving For Retirement Immediately -- It's never too early or late
    to start saving for retirement. Enroll in an employer sponsored
    retirement plan, IRA, or other retirement savings vehicles. Contribute
    the maximum or as much as you can afford.

  * Don't Forget College Funding -- Delaying college savings can ultimately
    delay retirement. The cost of college is rising and 529 Plans are a
    great way to grow tax deferred income for qualified education expenses.

  * Year-End Bonus? Don't blow your year-end bonus on the latest HDTV. Take
    10% of your bonus and reward yourself for a job well done, and invest
    the rest.

  * Pay Yourself First -- While paying bills each month, write a check to
    your savings account. Although 10% of your earnings should ideally be
    invested, even a small amount will add up over time. Our research shows
    that nearly half of respondents said if they knew that investing just
    $50 a month over several decades would provide them with more than
    $500,000 when they retired, they would be strongly persuaded to start
    investing for retirement.

  * Dump Your Debt -- The best strategy for cutting debt is to pay as much
    as you can on your high interest balances and pay less on those with
    lower rates.  By paying more than the minimum payment due, you'll end up
    paying much less interest because you'll pay off your balance much
    sooner.  Consolidate to one credit card and contact companies to
    negotiate a lower rate.

  * Change Your Spending Habits -- Don't use credit cards to pay day-to-day
    living expenses. Plan all of your purchases ahead and don't go to a
    store without a list. Also, wait until cash is available to buy big-
    ticket items so you are not acquiring more debt.

  * Stick with it.  A sound investment strategy designed by you and your
    advisor takes into account the inevitability of choppy financial
    markets.  It can be difficult, but it's important to stick with your
    plan during these times.

  About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. At September 30, 2006, OppenheimerFunds, Inc., including subsidiaries and controlled affiliates, managed more than $220 billion in assets, including mutual funds having more than 6 million shareholder accounts.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks and charges and expenses. Fund prospectuses contain this and other information about the fund, and may be obtained by asking your financial advisor, calling us at 1.800. 525.7048 or visiting our website at http://www.oppenheimerfunds.com/. Read prospectuses carefully before investing.

Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, hedge funds of funds, qualified retirement plans for individuals and corporations. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.

OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street, 11th Floor, New York, NY 10281. OppenheimerFunds, Inc. is a member of the MassMutual Financial Group and is not affiliated with Oppenheimer & Co, Inc. or Oppenheimer Capital.

  (1) The survey, which was conducted by Insight Express, examined the
      investment behaviors, knowledge and attitudes of 500 female and 500
      male investors in August 2006. OppenheimerFunds conducted its first
      major research study on women and money in 1992, and has been a
      leading advocate for women's financial independence since then.  The
      Company regularly conducts studies on women and their investing habits