Women in Wealth

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Women have made incredible strides, both personally and professionally: seeking higher education, taking on more senior roles, and owning/running almost half of all businesses in Canada1. Understanding the unique challenges that impact the successful financial future of women presents an opportunity to solidify relationships that you may not even know are at risk.

Who can Benefit

Female Clients dealing with:

  • Life Transitions –With life expectancy on the rise, the average women will live to be 83 years old and on average spend 15 of years in retirement.2 Not only does this create a greater risk of financial security but it also is complicated by the pressures of caregiving. Women are 52% more likely to become a caregiver at some point in their life.3
  • Changing Family Dynamics – Multiple marriages, children from those marriages, siblings, step-siblings and their spouses, or family estrangements are the common family dynamics for many families in Canada. The impact on estate planning is significant and it is estimated that at some point in their lifetime, 90% of women will be required to play the role of sole financial decision maker.4
  • Low Financial Confidence – 50% of women feel that they lack confidence in the quality of advice received from an advisor.5 They’re interested, but they want a female-friendly advisor who will coach and educate them about how to best navigate the twists and turns of their financial lives. Not one that just sells products.6 Your role in these steps is crucial for enhancing your relationships with female clients.

Communicate Your Value

As Canada’s population ages, women statistically outlive men, and are increasingly becoming important stewards of family wealth. It’s important to fully understand women’s unique concerns and proactively address these issues is essential in your client conversations and planning.

  • Women are in control of more money: Women’s earnings now account for a record-high 47 per cent of family income.7
  • Women are unhappy with the industry: Nearly 2/3 of women are unhappy with the investment industry. 70% of women switch advisors when their partner or spouse dies.8
  • Women are looking to connect: Women want a financial advisor who takes the time to understand what is important to her, someone who respects her and listens to her concerns and doesn’t jump to conclusions about what’s “best” for her.9

Address women’s life events and long-term goals, proactively addressing transitions, such as divorce, death of a spouse, and illness, focusing on solutions over products.

Get in the Know

  • Women now control $2.2 trillion in wealth in Canada, and that is expected to grow by 70 per cent over the next decade.10
  • Women have out-numbered men in higher education in Canada since 1987, according to Statistics Canada, with female college enrolment in the 2012/2013 academic year significantly higher than male enrolment, both in universities (57% vs. 43%) and in colleges (55% vs. 45%).11
  • Women are now the primary breadwinners in over 31% of Canadian households – a four-fold increase since 1976.12
  • Despite these achievements, 48% of women earning more than $100,000 fear becoming financially dependent on others.13

“Many professional women are conflicted about taking care of their children or their elderly parents, and at the same time focusing on their careers. Talking about this conflict from an emotional standpoint is an important step and should happen before reviewing financial solutions.”14

Kathleen Burns Kingsbury, Wealth Psychology Expert

1 https://www.bmo.com/privatebank/pdf/Q1-2015-Wealth-Institute-Report-Financial-Concerns-of-Women.pdf
2 https://www.bmo.com/assets/pdfs/wealth/bmo_aging_economy_report_en.pdf
3 https://www.bmo.com/pdf/ewp/womeninwealth/15-375-BWI_Q1_2015-women-in-wealth-CDN-E05web.pdf
4 https://www.ipcc.ca/documents/23852/531463/08_17_PW_Women+and+Wealth+White+Paper-Aug14_02_FINAL/3c6f8b93-6381-4454-b270-7efaf6a086b4?version=1.0
5 https://www.ipcc.ca/documents/23852/531463/08_17_PW_Women+and+Wealth+White+Paper-Aug14_02_FINAL/3c6f8b93-6381-4454-b270-7efaf6a086b4?version=1.0
6 https://www.bmo.com/pdf/ewp/womeninwealth/15-375-BWI_Q1_2015-women-in-wealth-CDN-E05web.pdf
7 https://www.huffingtonpost.ca/2019/03/04/canadian-wealth-women-cibc_a_23683866/
8 https://www.theglobeandmail.com/report-on-business/women-and-wealth-the-investment-sectors-new-and-crucial-frontier/article19979192/
9 http://www.etfcm.com/womenmoney/include/wadvisors-failing-woman.pdf
10 https://www.huffingtonpost.ca/2019/03/04/canadian-wealth-women-cibc_a_23683866/
11 Source: Women in Wealth: A financial golden age has arrived, BMO Wealth Institute, March 2015
12 Source: Women in Wealth: A financial golden age has arrived, BMO Wealth Institute, March 2015
13 Source: Women in Wealth: A financial golden age has arrived, BMO Wealth Institute, March 2015
14 Source: Women in Wealth: A financial golden age has arrived, BMO Wealth Institute, March 2015.

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