As a financial advisor, it’s important to understand the unique financial challenges that women face. Women tend to live longer than men, which means they need more money to support themselves during their retirement years. On top of that, women often spend a significant portion of their working years caring for children or ailing parents, which can impact their ability to save for retirement. This is compounded by the fact that women on average need to save 14% of their income towards retirement, compared to 12% for men.
COVID-19 has also disproportionately impacted women, with many having to leave the workforce to care for their children and become teachers. This “motherhood penalty” can have long-term financial consequences for women, especially as they may spend more time out of the workforce, which increases the gender wage gap.
Another challenge that women face is the increasing rate of gray divorce. 45% of marriages end in divorce, and the largest segment of the US population getting divorced are those who have been married for more than 25 years. This can have a significant impact on women’s financial well-being, as 80% of men die married, which means 80% of women die single. This increases the likelihood of women being left to handle their finances on their own.
However, a BlackRock study found that only 38% of women invest in the market, with 31% of those who don’t invest fearing losing everything. Even more concerning is that 55% of women believe that investing isn’t for people like them. This is where financial advisors can make a real difference.
Women need advisors who can speak to them in a way that resonates with them and helps them understand their finances. Financial advisors can bridge the gap between women and investing by providing the proper tools and techniques to help women invest their money to benefit their longer lifespan.
As a financial advisor, it’s important to have the courage to reach out to women who may not have sought financial advice before. This is a mission to help change how women understand and see money. By educating and arming women with the tools they need to manage their finances, financial advisors can help change generations of women and their families to come.
In summary, financial advisors have a critical role to play in helping women overcome the unique financial challenges they face. With the proper tools, techniques, and education, women can take control of their finances and achieve financial independence, even in the face of life’s challenges.
