There is a significant gap between men and women when it comes to investing but many firms and financial advisors are making positive steps to reduce it and seize on the enormous investment potential women possess.

Numerous studies have discovered that women feel less confident about their ability in the investing world. The Prudential Pulse survey, released this summer, found that only 40% of women felt confident about their retirement. Meanwhile, New York-based BlackRock found that 68% of women fear they will actually outlive their retirement while 69%call themselves savers and not investors.

There are a variety of reasons for this disparity. One has to do with the way women are perceived in the industry. Advisors often address just the husband when meeting with families, as a result 70% of women tend not to use the same advisor as their husband, according to the Pulse.

Other reasons had to do with how women perceive investing. New York-based BNY Mellon conducted its own research this year and found that women feel they do not have sufficient income to invest. They are also more risk-averse with only 9% identifying themselves as high-risk individuals. That makes investing particularly unattractive as many women see it as inherently risky. 

“Just in terms of diversification in different financial vehicles you find men more than women typically have a tendency to expand and reach out into different types of investment vehicles,” said Caroline Feeney, chief executive officer of US. Investment and Retirement for Newark, N.J.-based Prudential Financial.

Despite these numbers, a shift is occurring where more women are becoming the predominant breadwinners in their homes and could soon become the sole investors. Estimates call for women to control more than $30 trillion in investable assets by 2030.

“This is a segment that is growing rapidly and making sure that there is the right engagement process to benefit that segment [is a positive action],” said Michael Kim, president of Concord, Calif.-based AssetMark.

With such potential, financial advisors are taking notice and seeking ways to better address this segment of the population. One way is by listening more to their clients. The investment priorities of women can be different than those of men.

“Women want more than a financial return, they want to invest in companies that have a really positive impact on society,” said Anne-Marie McConnon, global chief client experience officer at BNY Mellon. “That’s something we need to address in how we are communicating with women … and how financial advisors engage with women.”

BNY is working to help advisors with their engagement with women and has been running training seminars entitled “Knowing Women” which incorporates the research the firm gathered to teach advisors how to help women reach their investment goals. McConnon said this module is the most requested at BNY.

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