Empowering Female Investors: Three Ways Advisors Can Make a Difference

In the world of financial planning, understanding your clients’ unique needs, goals and life circumstances is essential. But just as the classic book Men Are From Mars, Women Are From Venus¹ highlights the fundamental differences in how men and women communicate and approach relationships, these differences could also extend to how they view and manage their finances. Women often face distinct challenges² that may influence their financial perspectives, so advisors who can recognize and adapt to these differences will build stronger, more trusting relationships with these current and future holders of significant wealth.

Today, women control an estimated $2.2 trillion of Canada’s wealth and are poised to double that figure by 2028.³ Despite this growing power and influence, many women are still uncertain about their financial future and feel underserved in the advisory process. This presents a significant opportunity for financial advisors to bridge the gap and offer a tailored approach to help empower female investors.

Let’s explore three strategies for deepening your planning efforts with female clients so you can better serve their evolving needs, position yourself as a trusted partner in their financial journey and empower them to realize long-term financial success.

1. Understand women’s unique financial needs.

While every client is unique, research has shown⁴ that women face different financial challenges than men. In Canada, women tend to live longer, are still fighting for pay equity and often need to interrupt their career path for caregiving purposes. Researchers have coined the term “The Motherhood Penalty”⁵ to describe the disparity between expectations of mothers and fathers, and the resulting impact on female career growth and wages. This inequity exists even in countries that rank highly on gender equality measures. These and other factors can create gaps in financial independence, particularly when it comes to retirement planning, managing debt and feeling confident in a female client’s long-term financial security.

Acknowledge her unique financial challenges and opportunities by:

Understanding her life stages: Women experience financial life stages (and timing of those stages) that often differ from those experienced by men, so female clients will appreciate proactive guidance from their advisor to navigate them successfully through these stages.

As well, 42% of Canadian women aged 15 or older are providing unpaid care to dependents. Many women in Canada also find themselves in the “sandwich generation,” in which they are caring for both children and aging parents. Statistically, women are more likely than men to provide this care⁶ – and it has an undeniable effect on their financial outcomes over time.

Discussing these life stages early in the advisory relationship can help you remain aligned with her evolving needs and better equip you to develop a tailored financial plan. Then, you can review the plan as life circumstances change and provide her with a sense of control instead of anxiety. A financial plan that proactively guides female clients through current and anticipated future life stages may instill in them a higher degree of confidence and help them make informed financial decisions.

Fostering financial independence: Research shows that when women understand their finances and can manage them effectively, their sense of self-worth increases.⁷ Advisors play a pivotal role in encouraging women to build a sense of ownership and control over their finances.

Make sure your planning strategies are comprehensive and empower women to take charge of their financial future by asking relevant and thoughtful questions to engage with them. When making recommendations, show how it applies directly to their life situation. In addition to using clear and jargon-free language, check in regularly to ensure you’re answering their questions as needed, and to their satisfaction.

Prioritizing retirement readiness: Many women are concerned about their ability to save enough for retirement. While women tend to value security, they also tend to live longer than men. Advisors can provide reassurance to their female clients, both from a structural planning perspective and by promoting a sense of stability on the road to retirement.

Emphasize retirement planning that incorporates different longevity scenarios, healthcare costs and income strategies to create a sense of security and control for your female clients – no matter how their retirement years may unfold.

In addition to discussing income planning during retirement, encourage each female client to begin thinking about her ideal lifestyle in retirement. Rather than focusing on just her financial goals, helping her develop a clear retirement vision will increase the likelihood that she’ll experience a purpose-filled and satisfying retirement as well.

2. Enhance your client meetings to discuss her life goals and values.

Women tend to take a holistic view of their finances, often considering how money decisions could impact their family, lifestyle, career and overall values. Incorporate these pieces into your client meeting process by:

Listening actively: Really get to know her life situation by asking thoughtful questions and listening with the intent to understand her inner world – not with the intent to reply. Ask about her financial aspirations beyond the numbers, such as funding children’s education, traveling or supporting charitable causes. You can demonstrate your grasp of her priorities by repeating what you heard and then asking targeted follow-up questions to ensure you have the full picture.

Building a collaborative approach: Women often prefer a sense of partnership with their advisors. This partnership can be developed through regular check-ins and by offering diverse educational opportunities. This will help ensure that women feel respected and part of the process, which in turn increases the likelihood of investing success. Questions such as, “How do you feel about what we discussed today?” can help you assess where gaps may exist in your approach.

Collaboration also comes from encouraging a female client to create goals that serve both her individual needs and those of the people she cares about. Together, you can adjust these goals in subsequent meetings as her priorities change. This values-based, holistic approach not only helps female clients clarify their financial vision, but also strengthens your role as a financial partner who fully understands their broader life goals.

3. Promote financial confidence through your client experience.

Building confidence in financial decision making is a critical factor in helping women feel empowered about their finances. Roughly 55% of women say they want more involvement in financial matters, but don’t know where to start.⁸ Some women may not feel fully confident in their understanding of investing, taxes, retirement planning and the like. This lack of confidence may sometimes prevent them from fully engaging with their financial advisor.

You can help bridge the confidence gap through your client experience by:

Offering tailored financial education: Educating female clients can be done both through broad outreach and in one-on-one meetings. Provide relevant, accessible education by hosting seminars and webinars and by sending out regular educational content on topics like retirement savings, budgeting and financial literacy. Then, follow up with them in your review meetings to see if further education is desired. This two-pronged approach will help demystify the financial planning process in a way that’s tailored to them and at a pace and level of complexity that’s appropriate. Show that you understand their point of view and life stage by focusing on commonly discussed topics, such as planning for maternity leave, navigating executorship or passing along financial literacy to children.

Simplifying complex concepts: As discussed earlier, women tend to appreciate clear, jargon-free explanations of complex topics. Using visual tools like charts or graphs to explain your recommendations can be helpful. Use projections to help them see how decisions made today may impact their long-term financial health, and break down their long-term financial goals into logical, digestible steps.

Establishing regular communication: Women generally value open, regular and long-term communication with their advisors. Regular check-ins provide an opportunity to review their financial plans, measure progress towards goals, and adjust strategies as life circumstances evolve. These consistent conversations demonstrate your commitment to their goals and reinforce their trust in your proactive approach.

A focus on education and communication fosters a sense of empowerment. When women understand their financial situation and feel confident in their decisions, they’re more likely to stay engaged in the planning process – and stay with the advisor who genuinely understands and respects them.

Conclusion

Empowering female investors is essential as women continue to control a growing share of wealth. You can build stronger, enduring relationships with female clients by understanding their psychological differences and unique financial needs, deepening your connection through your meeting process and promoting financial confidence through your ongoing client interactions.

As an advisor, tailoring your strategy to address women’s specific challenges not only helps them achieve long-term financial security, but also positions you as their trusted advisor. As more women take control of their financial future, your commitment to their success will foster lasting relationships and help ensure your practice continues to thrive.

To learn more about how to create a female-friendly practice, please reach out to your CI sales team.

¹ Source: https://g.co/kgs/fvxWTCQ
² Source: https://www.womenofinfluence.ca/wealth/
³ Source: https://www.womenofinfluence.ca/wealth/
⁴ Source: https://www.wealthprofessional.ca/news/industry-news/12-more-women-feel-financial-stress-survey-shows/384318#:~:text=The%20BMO%20Real%20Financial%20Progress,inflation%20(63%20per%20cent%20vs
⁵ Source: https://ourworldindata.org/economic-inequality-by-gender
⁶ Source: https://www150.statcan.gc.ca/n1/pub/89-652-x/89-652-x2024002-eng.htm
⁷ Source: https://www.forbes.com/sites/melissahouston/2024/10/24/how-financial-independence-transforms-womens-lives/
⁸ Source: https://cibcvirtual.com/womeninwealth