Advisers need to adapt to women clients

Female investors want to learn about preparing for retirement, but advisers who want to attract that market need to adapt their practices, according to a study released yesterday by Allianz Life Insurance Co. of North America. Women’s top planning topics included “planning for retirement” (54%), “how to start saving or investing on very little income” (53%), and “basics of buying smart” (46%), according to the “Women, Money & Power Phase II” study of 1,443 women between the ages of 25 and 75. Learning the definitions of basic financial terms, including individual retirement accounts, annuities and mutual funds, came in at 40%. However, advisers and planners will have to change their ways to educate women. When asked to describe financial materials, 44% of the women chose the word “overwhelming” and 36% chose “complicated.” “Boring” came in third (32%) and “foreign” (26%) was fourth. “The way content is delivered is often dry and confusing,” said Sherri DuMond, vice president of marketing solutions for Minneapolis-based Allianz. “Women prefer learning in small groups of 10 to 15, and they want to be in similar age and lifestyle groups.” For example, divorcees shared similar lifestyle elements that set them apart from other women but allowed them to find common ground with each other. Recommendations for educating women and getting them engaged in their finances included outreach through community groups, using real-life anecdotes to help illustrate financial information, and turning a financial education seminar into a social event.