Women are redefining their role in financial decisionmaking, finds a new report out today by the CFP Board.
“Building Wealth: Insights on Women’s Aspirations & Growing Financial Power,” finds that 69% of women consumers are their households’ primary decisionmakers when it comes to investments. Among married women respondents, 60% are the main investment decisionmakers in their households.
As more women take charge of their households’ finances, the CFP Board calls on the financial services industry to expand the number of women advisors in the workforce.
“While the number of women CFP® professionals has grown by half in the last decade, we must continue to expand this representation to meet the needs of future clients,” said Board of Directors Chair Liz Miller. “The fact that only 24% of CFP professionals are women shows the tremendous opportunity for women to enter this field and help others secure their financial futures.”
Understanding women’s financial priorities
According to the CFP Board, women respondents are concerned about their ability to afford a comfortable retirement, build emergency savings, and provide caregiving support for loved ones. Eighty-three percent of women list living comfortably in retirement and avoiding outliving their money as a high priority, while 68% prioritize having a sustainable emergency fund.
Financial planners in the survey rank caregiving support as a top priority among women clients, with 37% expressing concerns about their children, or a close loved one like a mother, grandmother, or sibling (25%).
Along with planning for caregiving expenses, women were also more likely than men to focus on personal long-term care needs, emergency funds, philanthropic giving, and healthcare costs.
When seeking financial planners, women were likely to work with professionals who can show empathy and build personalized solutions catered to their needs. They also want to partner with an advisor who has a proven track record of success, can explain complex concepts clearly, and has relevant industry certificates, according to the CFP Board.
“Understanding women’s goals, challenges and financial planning interests enables CFP® professionals to provide tailored advice,” said CFP Board CEO Kevin R. Keller. “A trusting relationship with a personalized perspective is the foundation of ethical, competent financial planning.”
CFP Board’s survey gathered responses from two surveys—the first with 296 women CFP professionals who work directly with clients and/or spend most of their time providing financial planning services. The organization conducted a second survey with 301 women consumers in households with incomes of at least $60,000 and/or minimum investable assets of $50,000.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
