Some two-thirds of female consumers in a new study say they are their households’ primary decision-maker regarding financial investment choices, including 60% of married women, CFP Board reported Tuesday.
The report from the Certified Financial Planner Board of Standards noted that women now control a significant and increasing share of U.S. wealth, a trend expected to continue owing to such factors as the so-called great wealth transfer, according to recent research.
CFP Board’s own research shows that most partnered and employed women are the primary income earners in their household or earn nearly as much as their spouse or partner.
Fifty-six percent of study participants think that financial planners can best help them achieve their financial goals, more so than online tools and other resources. However, those who want to work with a female professional may have trouble finding one.
“The fact that only 24% of CFP professionals are women shows the tremendous opportunity for women to enter this field and help others secure their financial futures,” CFP Board chair Liz Miller said in a statement.
Miller said the number of female CFP professionals has grown by half in the past decade but must continue to expand to meet future clients’ needs.
The Board’s report is based on two surveys conducted by Heart+Mind Strategies. The first was conducted Oct. 29-Nov. 18 among 296 female CFP professionals who work directly with clients and/or spend most of their time providing financial planning services.
The second one, fielded Nov. 8-25, gathered responses from 301 female consumers in households with incomes of at least $60,000 and/or minimum investable assets of $50,000.
Women’s Financial Priorities
The survey found that 83% of respondents want to live comfortably through retirement and not outlive their money, while 68% prioritize having a sufficient emergency fund.
CFP professionals said caregiving is a critical and distinct concern among their female clientele. Thirty-seven percent reported that these women most commonly express concerns about their children, and 25% said they are most concerned about a close older relative.
Only 22% of CFP professional respondents said their female clients were primarily concerned about their own financial situation.
Furthermore, they reported that women are more likely than men to focus on these things:
- Planning for caregiving expenses for a loved one
- Personal long-term care needs
- Emergency funds
- Philanthropic giving
- Health care costs
Women’s Advisor Requirements
Women greatly value financial planning, according to the survey. Fifty-six percent said they were most likely to trust a financial planner or advisor, while 21% would most trust an investment advisor. Only 7% said they would prefer to use online tools or apps.
Sixty-one percent of respondents said it was extremely or very necessary to work with a professional financial planner to develop a comprehensive financial plan.
Although only a tenth of surveyed women said a female advisor can best meet their individual needs, more than half said they have or would seek out a financial planner who shares their life experiences and demographic background. Younger and multicultural women are more likely to prefer a female advisor.
However, 80% purported to be agnostic about the gender of their advisors.
Women seek financial planners who show empathy, craft tailored solutions to their specific challenges, have a proven record of success, explain complex concepts clearly and hold relevant certifications.
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