Single women are tech savvy—and hungry for financial education. Industry research shows single and widowed women are eager to learn—more interested than other groups in attending in-person seminars, and more likely to turn to Facebook or Instagram to learn about investing. They also prefer to use an app for trading (Source: E*TRADE Financial Corporation, E*TRADE Financial Q1 2020 Streetwise Report). Have you built an accessible and informative online and/or social presence? Do you participate in educational programming? If not, you may be missing opportunities to build stronger connections to this market.
Single and widowed women face unique long-term financial needs. Most of us know women can expect longer lifespans than men, but many don’t realize women are also more likely to retire earlier and less likely to have a pension. Unfortunately, single and widowed women also spend less time planning for retirement than most people, and are more likely to make an early withdrawal from their 401(k) (Source: E*TRADE Financial Corporation, E*TRADE Financial Q1 2020 Streetwise Report). This presents a unique opportunity for advisors to help single and widowed women plan for retirement, long-term care (LTC), and medical needs.
Widowed clients may benefit from additional advisor support. A staggering 77% of spouses who outlive their partners in the U.S. are women. Even if clients face widowhood at a younger age, financial advisors may find themselves grappling with complex issues and changing needs that go beyond asset management. Become a true resource for widowed clients—help connect clients with bereavement support organizations, and assist with other practical challenges, such as selling a home.
New Solutions For Women’s Wealth
RIAs report that as many as 25% of their single or widowed clients are women, and awareness is spreading that the unique cadence of their financial lives requires different products and services than their male counterparts. But advisors should be encouraged to know that those who are willing to address the needs of this market will play a vital part in reshaping the industry as women’s wealth continues to grow.
Kerry McDermott is senior relationship manager at E*TRADE Advisor Services.