Women Selecting Financial Advisors
The primary qualities that women look for in a financial advisor are the ability to listen to them, understand their concerns, explain things to them, be transparent about fees and gain their trust to build a long-term collaboration and financial plan. 93% of women do not care if the advisor is male or female. 80% of women change their financial advisors within a year of the death of their husband owing to a lack of connection with the previous advisor, who may have dealt solely with the husband or considered them as one entity. They would like to have an active involvement in their financial portfolio, and 87% of women claim that they are unable to find an advisor with whom they can connect.
As per the latest data on Saskatchewan, out of a working population of 818,850 people, 77,910 earn an income of $100,000 or more. The median total income in 2015 was 37,730. On an average, women in Saskatchewan have an average income of 1.8% more than the rest of Canada. For this research, it is assumed that women in Saskatchewan aged 35-54 years, with a household income more than $100,000 a month will have a similar mindset to other upper-middle-class women across Canada. It is also assumed that most people in this age group would have children.
Women in Saskatchewan, live an average of five years longer than the men. Also, their average earnings are less than 75% of that of the men. Given this, they tend to have a more long-term approach to finances, so that they do not outlive their savings. Also, women look at financial goals as a part of their personal lives and not separate as men do. They look at savings in terms of security and safety, and a good investment plan is one that meets their life goals.
In general, women are less confident of their financial knowledge as compared to men and appreciate someone who can help them understand better. While 45% of men surveyed claimed to be "financially confident," only 27% of women did so in contrast.
CHANGING POSITION OF WOMEN
Women are growing into leadership roles in business, politics and all walks of life. 62% of women in Canada have a graduate degree. Women own 33% of all wealth in Canada. It is predicted that by 2020, 67% of financial assets will be in the hands of women. 40% of women earn more than their husbands, and 43% of Canadian investors with $500,00 or more are women. All these factors have triggered a surge in women looking for financial advisors who they can relate to and collaborate with to reach their financial goals.
HOW FINANCIAL ADVISORS FAIL WOMEN
Most women complain that they are not listened to. A lot of financial advisors come with 'templatised' solutions and are not open to listening to their female clients. There is an assumption that women are risk-averse and don't want to be involved in details of financial matters.
Financial advisers should spend time with their female clients to understand their needs.
To wrap it up, women are less confident about financial knowledge than men, and they look for advisors who can listen to them, understand their concerns, address their doubts and work together with them to come up with long-term solutions.