International Women's Day 2019 is advocating #BalanceforBetter. This year's theme is about celebrating the achievements of women while working towards a more gender-balanced world. The call for balance encompasses all areas of life from equality in the work place, to media representation and the gender-balance in wealth.
#BalanceforBetter got us thinking about whether women-specific financial advice is necessary and what difference it makes.
Why do women need female-specific financial advice?
Women tend to approach their financial planning more holistically.
The case for female-specific financial advice takes into account that women are generally less likely to earn as much money as men. While by no means is this all-encompassing, there is still pay inequality in some organisations, and women remain more likely to cut their working hours to care for children or other relatives. Combine a lower income with the fact that women tend to live longer than men, they are planning for different type of financial empire.
Carla Dearing, a CEO speaking to Forbes Magazine, also points out that in the current financial climate, advertising and products are largely geared to the concerns of men. Slogans focus on the need to invest, manage wealth and play the market. However, women tend to approach their financial planning more holistically, concerned about being financially independent into old age so they don't burden their children, for example.
The type of messaging put out by the financial industry can put women off approaching professional financial advice services altogether because it doesn't align with their goals. The fact that a large number of financial advisors are male – over 80 per cent in the US, according to Financial Advisor Magazine, adds to the argument that it's a male-dominated sphere.
What this means for women's financial planning services
Gender-balance in financial advice is about taking into account the different circumstances women often find themselves facing, and the type of help they need to build a plan that works for them. Advice needs to factor in the potential for fewer working years, lower salaries and potentially different priorities and hopes, but still provide a viable route to building a financial empire.
However, for some clients, it's not so much about gender-specific advice as it is about a service that's tailored to the individual, no matter their personal circumstances. Regardless of whether the advisor is male or female, financial advice is about helping the individual achieve their goals. They don't need advice that's packaged differently because they're female, but instead want accessible and relevant information appropriate to their circumstances.
At Money Empire, we firmly believe in helping our clients access the best products possible so that they can build a financial empire that supports their lifestyle and future needs. If you'd like professional yet personal advice, get in touch with our team for an unbiased conversation.