The rising cohort of single American women who are facing unique retirement challenges need advisors who understand what they need. But are advisors able to offer this?
A new Advisor Authority from Nationwide has found that 96 percent of advisors taking part said they feel well equipped to take on more women clients in the next 12 months (and 90 percent intend to do so) but only around half of female participants who work with an advisor or other financial professional said they felt their financial goals are understood.
"This highlights an opportunity for advisors to take a step back and ensure they are truly listening in their interactions before offering solutions,” Suzanne Ricklin, vice president of sales and retention for Nationwide Retirement Solutions, said in a statement. “Many women investors we surveyed appear to indicate they don't feel heard by their advisor – and that can be a true differentiator for advisors in advancing relationships with more women clients."
Advisors are working hard to find the right retirement solutions for women, including 79% of advisors who are utilizing annuities to help protect their clients’ assets against the impact of market risks. Diversification and noncorrelated assets (77%) and liquid alts such as mutual funds and ETFs (58%) are other top strategies.
"For single women clients in particular, focusing on their unique needs, like planning for long-term financial independence and building a robust emergency fund can help them feel more confident and committed,” Ricklin added. “With women poised to inherit trillions of dollars of assets from the Baby Boomer generation over the course of the Great Wealth Transfer, advisors who focus on this client group and demonstrate a clear understanding of their needs and preferences have a huge opportunity to grow their practices."
Female respondents said that the advice they need includes ensuring they have enough saved to enable retirement, how to convert accumulated savings into retirement income, and tax planning.
Being able to pay their bills in retirement is a top priority, the survey found, while 31% of single women who are 55 or older (or already retired) expect to be paying down credit card debt in retirement.
Feeling more confident in their financial futures is the No. 1 reason women gave for working with their financial advisor.
More than a third of women said they are currently work with an advisor, including 41% of single women who started to do so in the past 12 months, compared to 37% of married women.
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Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
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