Women and wealth: The opportunity for advisors

Significant financial tailwinds are driving the conversation around women and wealth.

First, we’re amid “the power shift of the century.” Due to longer life expectancies, many women are likely to inherit wealth from their parents as well as their spouses. The result is that by 2030, women will control up to $30 trillion in financial assets, according to Forbes.

At the same time, women report they’re feeling overwhelmed with the process of saving for retirement — and less engaged with their retirement plans than men are. Only 41% of women surveyed by The Standard said they’re comfortable selecting investments. Meanwhile, two-thirds said they would welcome help from a personalized planning experience.

The growing attention on women and wealth is an opportunity for financial professionals to make a meaningful difference in their clients’ lives. Explore the growing influence of women in the financial landscape and strategies to help them meet their retirement needs and goals.

Key trends about women's investment behavior

Before your next client meeting, review these key trends about women’s investment behavior:

• Many are looking for advice. As women gain control of more wealth, many plan to invest more actively. Women differ from men in that they’re less likely to do their own online research about investment decisions or even make these decisions on their own. They’re more likely to rely on advice from financial professionals. This is where your expertise in retirement saving solutions comes in.
• They lean toward conservative investments. Studies show that women are more risk-averse than men when it comes to investing. You can address their preference for stable and reliable options by highlighting products like annuities and stable value funds. Emphasize the strong guarantees, protections and consistent growth of annuities, in helping women investors meet their financial goals, for example.
• Low confidence is an issue for some. Women often report less confidence and knowledge about investing compared to men. This can affect their investment decisions and outcomes. Position yourself as a trusted advisor by understanding their financial goals and helping them achieve long-term security.

Align with their values

Many women prioritize support for organizations that reflect their values. Purpose-driven financial decisions are a key part of their strategy. Some women may gain confidence when their financial choices contribute to positive change while also securing their future.

• Values and mission: There are many facets to investing in companies with missions that match your client’s. A company's commitment to social responsibility, sustainability and ethical practices, for example, can resonate deeply with some women investors.

• Positive contributions to the community: How a company positively interacts with its community and contributes to societal well-being is meaningful to many investors. Women investors who are looking for socially responsible options may seek organizations with strong philanthropic profiles.
• Transparency and trust: Companies that advocate transparency are more likely to gain the trust of investors. Women may gravitate to companies that offer clear communication about their operations, financial health and plans for growth. Having detailed information about companies can help them feel more confident in their investment decisions.
• Leadership and belonging: Women investors may lean toward supporting companies that have a gender-diverse leadership team. They may research the makeup of a company's leadership team and analyze their commitment to social issues.

 

Focus on key factors

As you help investors choose the right retirement solutions, remember other factors that can affect women. These include longer life expectancy, gender wage gaps and career interruptions for family reasons.

• Think long term: Statistically, women live longer than men. Prioritize products that help ensure they won’t outlive their retirement savings. Individual retirement accounts and lifetime income solutions can provide financial security. Products that provide guaranteed payments, such as annuities, help ensure lasting financial security.
• Build in stability: Help clients build a strong retirement portfolio that includes stable and predictable income sources. Options that offer steady financial growth can help them overcome challenges like career interruptions and income fluctuations.
• Raise confidence: Research shows that less than half of women are comfortable determining how much to save for retirement. Offer a steady stream of information to help build confidence. Provide detailed information about retirement readiness strategies and point out tools that can help them stay on track for saving. Be sure to offer a personalized level of financial education. Strive for a balanced approach to investing that includes both guaranteed income products and growth investments. These options can empower them to make sound decisions.
• Bridge the gaps: Keep in mind that not all women have access to traditional retirement savings vehicles through employers. Suggest personalized financial strategies — such as individual retirement accounts, brokerage accounts and tax-advantaged savings options — to help bridge the gaps in retirement preparedness.

By building confidence, providing education and offering personalized solutions, you can help women make informed investment decisions. The opportunity is vast. Women are not only shaping their own financial futures, they’re also driving broader economic change. Recognizing their unique needs and values will be key to building lasting, meaningful relationships in the evolving financial landscape.

Ready to help empower women to chart their financial future? The winds are in your favor.

 

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