While women investors say they value the guidance their financial advisor provides, some are calling their advisors out for explaining financial concepts in a patronizing matter.
New data from Nationwide Retirement Institute shows that 95% of women investors believe their advisor treats them with the same respect as male investors, but about 30% feel as if their advisor can sometimes “mansplain,” or patronize certain topics.
Women are asking their advisors to work on their communication when providing advice and breaking down financial topics. Thirty-four percent would describe their advisor as condescending when explaining recommendations or responding to questions, and 32% say their advisor assumes they understand less about finances than they actually do.
While some advisors may think they’re just explaining a concept, the reality is that they’re communication style could land as dismissive or condescending, says Suzanne Ricklin, senior vice president of Nationwide Retirement Solutions Distribution.
“Our survey makes it clear many women investors don’t want to be talked at, they want to engage in a discussion and have a conversation around their needs,” Ricklin said. “Advisors should ask thoughtful questions to get to the root of their client’s needs, do the research to be well-versed in the unique issues women are facing and listen to understand each client’s unique goals and perspectives. When advisors shift their emphasis from explaining to asking questions and listening to what is most important to their women clients, they can build stronger relationships and more aligned goals.”
Nationwide’s survey highlights an ongoing disconnect between women investors and the traditionally male-dominated field of financial advice. Instead, women advisors, while still a small segment of the advisory population today, are leading the industry with tailored service for women clients.
These advisors are taking a personalized approach to advice that focuses on life stages. Forty-three percent of women advisors have increased their focus on protection and guaranteed income solutions, compared to just 35% of male advisors, and 44% have studied the unique retirement challenges that women navigate, relative to 38% of men.
Further, 36% of women advisors have completed training or education on financial planning for women, compared to 29% of male professionals, 40% of women advisors have sought feedback from women clients on how they can better serve them, compared to 35% of male advisors.
Nationwide notes that male advisors who want to better connect with women clients could learn from the practices their colleagues implement.
“Male advisors can increase their success with women investors by evolving their approach throughout the client engagement process, incorporating additional questions and discussion opportunities for their women clients,” Ricklin said.