Unique health and caregiving worries and an industry that doesn’t listen well.
Women have special concerns about financial security that financial advisors need to address. For one thing, they tend to live longer than men, so they must worry about paying for an extended old age. For another, women of all ages are an increasingly dominant part of the economy.
Pick up any newspaper, turn on the TV, or tune into any radio program. You will notice the clout of women in the marketplace, community affairs, business, politics, and finance.
The data is remarkable and underscores the need for conversations that financial advisors should have with their female clients, recognizing that the challenges women face are myriad.
- Women comprise 51% of the U.S. population and roughly 65% of the workforce.
- They are the sole heads of 32% of American households.
- 60% of college students are female.
- Women control 65% of global and more than 80% of U.S. spending.
Establishing Financial Security
A Family Wealth Advisors Council survey indicates that 54% of women consider health a major risk to their financial future. They worry about their death and the death of their spouse as a major risk. So, is your disability insurance lacking or inadequate, and will your life insurance deliver sufficient financial horsepower if the breadwinner dies? Are you sure?
A surprising number of single and married women do not have wills and have not provided for their children. And the International Foundation for Retirement Education states that the number one retirement issue for women is the threat of poverty. Consider that of people age 85 and older:
- 71% are women;
- The median income for older women is $15,248; and
- The median income for older women is only 53% of that of older men.
Early in the planning game, women should focus on retirement income-building vehicles, insurance, Social Security strategies, estate planning, and financial freedom. And caregiving is the number two issue.
Did you know that of unpaid caregivers, 57% care for parents, and over 70% are women? When women assume caregiver roles, they are 2.5 times as likely to end up in poverty as non-caregivers; single caregivers are four times more likely to end up in poverty than married women.
Families should discuss financial security for both the baby boomers and their parents. Understanding the ins and outs of long-term care insurance is important in the planning process.
Women & Financial Planners
In 2023, women are underserved in the financial services industry because there is still a huge disconnect between those who have financial planners and those who want one. Consider this: the Center for Talent Innovations reported that 75% of women under 40 do not have a financial advisor.
Why is it that so few women get the advice that they need? It could be that the disconnect lies in the fact that between 15–20% of all financial advisors are female, according to Barron’s. And it’s safe to assume that more women want to work with a financial advisor but are not connecting to those out there because most of them are males.
This is not to say that women should only work with female advisors, but we all know that many men do not communicate with women effectively (of course, it’s true the other way too). And a survey by Boston Consulting Group found that 70% of women with financial advisors felt that their advisors were patronizing or disrespectful toward them.
These miscommunications are likely the main reasons there is still a giant gap between the women who have a financial advisor and those who do not. This is especially surprising because Fortune recently reported that women control about $14 trillion in the United States, the equivalent of China and India’s combined gross domestic product.
The good news is that the financial industry realizes it ignores women, who are responsible for most financial household decisions, at its own peril. We are seeing a huge movement of professionals that want to be more responsive to their female clients. The industry finally realizes how much power women truly hold.
Women have the power and ability to affect a lot of change in the world, especially since they now control so much of America’s wealth.
It’s About You
If you are among the 75% of women who don’t have a financial advisor, don’t let your fears about feeling judged and misunderstood stop you from getting advice to create the financial life of your dreams.
We understand women’s unique challenges and how to navigate these issues to help safeguard their wealth. Our HFP S.T.A.R. Strategy provides all the tools women need to secure their financial freedom, regardless of age or current investments.
Click here to learn more about our HFP STAR Strategy process.
It is not too late to take control of your financial future, no matter where you are. Let Heritage Financial Planning help you ensure all your hard work pays off with a comfortable retirement and the ongoing financial security you’ve earned. Give us a call at our office to get started today.
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