Women are 3.5 times more likely than men to outlive their spouses, and those who have not taken an equal position in the decision-making may find themselves unprepared for complex financial choices ahead. Thus, an advisory relationship involving solely a primary client poses risks for a surviving spouse, and for the advisor’s practice. Studies show that some 70 percent of women leave their family financial advisor after the death of a spouse.
Changing Times, Changing Attitudes
As the financial power and prominence of women has grown, so, too have certainty levels among younger women investors, The Generations Project found. Among millennial women, for example, just 15 percent expressed uncertainty about asset diversification, half the rate of boomer women.
Younger couples today are much more partners in their approach to finances. They have more college debt in their balance sheets than previous generations, so they have to work together. And you’re more likely to have a couple comprising two professionals, both in the workforce. Regardless of such changes, though, true collaboration on family finances will always require more than just lip service and the role of the advisor will only continue to grow.
Ned Dane is head of private client group at OppenheimerFunds.