The Great Wealth Transfer: Why Financial Professionals Need to Adapt Their Approach to Women Clients
The financial services industry stands at a pivotal moment. As trillions of dollars move between generations in the Great Wealth Transfer, women are positioned to inherit and control an unprecedented amount of wealth. Yet many financial professionals still struggle to effectively serve this crucial demographic.
Understanding the Changing Landscape
Today's female clients are more financially empowered than ever, with 71% actively investing in 2024 – a significant increase from 60% just a year ago. However, a striking disconnect remains: 58% of women still view investing as intimidating. This "confidence gap" presents both a challenge and an opportunity for financial professionals.
The Multigenerational Caregiver Challenge
One of the most overlooked aspects of women's financial journeys is the impact of caregiving. Nearly 12% of American adults are "sandwich generation" caregivers – simultaneously caring for children and aging parents. This dual responsibility creates unique financial planning challenges:
Interrupted career progression
Reduced retirement savings
Decreased Social Security benefits
Emotional and financial strain
Financial professionals who understand and address these challenges can provide invaluable support to their female clients.
The Longevity Factor
Women's longer life expectancy adds another layer of complexity to retirement planning. With a 50% chance of one spouse living to age 94 in today's couples, women need strategies that ensure their assets last. This includes:
Protecting against market volatility
Planning for increased healthcare costs
Creating sustainable retirement income
Maximizing Social Security benefits
Building Trust Through Understanding
Women's approach to investing often differs from men's, particularly during market volatility. While men are twice as likely to increase investments during market fluctuations, women typically prefer steady, conservative growth strategies. Understanding this difference is crucial for building lasting client relationships.
The Path Forward
To better serve female clients, financial professionals should:
Create an inclusive environment that encourages questions
Provide clear explanations without financial jargon
Focus on long-term security and steady growth
Address specific concerns about longevity and healthcare
Recognize the importance of values-based planning
Taking Action
The most successful financial professionals will be those who adapt their approach to meet the unique needs of women clients. This means moving beyond traditional investment discussions to address:
Financial independence strategies
Caregiving impact mitigation
Long-term care planning
Values-based investing options
Legacy planning
By understanding and addressing these unique challenges, financial professionals can build stronger, more lasting relationships with their female clients while helping them achieve their financial goals.
Shanna Strandell
Marketing Content Manager – WealthVest
This content is general information for educational purposes and is not intended to constitute fiduciary advice. Please consult your financial professional for a specific recommendation about purchasing this product.
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* Livingston, G. (2018, November 29). More than one-in-ten U.S. parents are also caring for an adult. Pew Research Center. https://www.pewresearch.org/short-reads/2018/11/29/more-than-one-in-ten-u-s-parents-are-also-caring-for-an-adult/
** MORTALITY IMPROVEMENT SCALE MP-2021." SOCIETY OF ACTUARIES. ACCESSED OCTOBER 11, 2022. HTTPS://WWW.SOA.ORG/RESOURCES/EXPERIENCE-STUDIES/2021/MORTALITY-IMPROVEMENT-SCALE-MP-2021
*** Fidelity Investments, 2024 Women & Investing Study, https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/678330.pdf