Ladies, It’s Time to Take the Financial Wheel: Closing the Investment Gender Gap

Despite women controlling over half of personal wealth in the U.S., many still feel sidelined by the financial industry. A 2019 study by New York Life Investments revealed that 40% of women believe financial advisors treat them differently, and 36% feel patronized. With 72.3% of U.S. financial advisors being men, it’s evident that the industry hasn’t kept pace with women’s evolving financial roles.

This disconnect contributes to a significant investment gender gap. While women are earning and saving more, they’re less likely to invest—often due to a lack of confidence and feeling unwelcome in financial discussions. This hesitancy can jeopardize long-term financial security, especially considering women generally live longer than men.

Traditional financial advisors often focus on riskier investments suited for younger clients, neglecting the needs of those nearing retirement. For women, especially those approaching retirement age, this oversight can be detrimental. Women face unique challenges, including lower financial literacy scores and the potential of outliving their spouses, which can leave them unprepared to manage finances alone.

To bridge this gap, women must take proactive steps:

Educate Yourself: Seek resources that demystify investing and retirement planning.

Engage in Financial Conversations: Ensure you’re part of discussions about family finances and retirement plans.

Seek Advisors Who Understand Your Needs: Look for financial professionals who prioritize your unique financial goals and challenges.

Empowerment starts with knowledge and participation. By taking control of your financial future, you not only secure your retirement but also pave the way for greater gender equity in the financial world.

Source:
The Investment Gender Gap: Women Feel Ignored by Financial Advisors – Retirement Media Inc.

A 2019 study by New York Life Investments revealed that 40% of women believe financial advisors treat them differently, and 36% feel patronized