Women command an increasing amount of wealth, but a large number say they don’t feel they are in control of their finances. Here are some ways women can embrace their growing financial clout to strengthen their well-being.
By 2026, it’s estimated women will control close to half of all accumulated financial wealth in Canada.1 Despite this growth in assets, a recent Leger poll of 1,000 Canadian women shows that they’re still struggling for financial independence. For example, 86% of respondents reported having at least one financial hardship, 28% depended on a partner or another person to make ends meet financially and 38% said they knew “very little about finance and investment.”2
Due to this lack of financial knowledge, women tend to lack the confidence to manage their money. IPC has found that in most households, men are often the lead decision-makers for financial and investment matters (74%), versus just 46% of women.
But at some point, women will have to address this challenge. Later in life, almost all women (90%) will become the sole decision-maker for their finances.3 So, how can women strengthen their financial well-being in the face of these realities?
Importance of financial advice for women
A Financial Advisor can be an essential partner for women by helping them build a financial plan and improve their financial literacy. When it comes to financial planning, advice has value. Research shows that investors who rely on an advisor are 3.9 times wealthier after 15 years compared to non-advised investors.4 This can help women ensure they have enough money to last a lifetime. Having a trusted advisor can also be critical for women by providing guidance and insight, based on a thorough knowledge of their financial situation.
Importance of a financial plan for women
Women have different financial considerations than men: They live longer and are more likely to have interrupted careers and experience financial challenges after a divorce.5 Women also tend to play many roles – from being mothers and caregivers to coaches, business leaders and entrepreneurs – which can affect their ability to save and impact their spending priorities. Having a financial plan can help address these challenges, creating an objective written plan to manage uncertainty and help women meet financial milestones. It can also offer them peace of mind and give them more time to focus on the things that matter most to them, be it their health and wellness, family or career.
Getting support to help grow confidence
Unfortunately, more than half of the women (56%) in the Leger poll had no financial plan.6 There’s an opportunity for women to equip themselves with the toolkit they need to reach their financial goals and be better prepared for what life brings by working with an advisor.
Getting support to help grow confidence is where I can help. My job is to understand my clients’ various needs and the financial issues, challenges and opportunities in their lives. To learn more, contact our office today or download our Women & Wealth e-book.
1“Women and wealth: Financial confidence comes with finding the right advice,” IPC Private Wealth, March 2018.
2“Omni report: Financial Independence,” Financial Planning Standards Council, February 21, 2018.
3“Women and wealth: Financial confidence comes with finding the right advice,” IPC Private Wealth, March 2018.
4Claude Montmarquette, Nathalie Viennot-Briot. “The Gamma Factor and the Value of Financial Advice,” Center for Interuniversity Research and Analysis on Organizations, 2016.
5“Women and wealth: Financial confidence comes with finding the right advice,” IPC Private Wealth, March 2018.
6“Omni report: Financial Independence,” Financial Planning Standards Council, February 21, 2018.