When it comes to money, every individual has unique needs.
But research also shows that, as a group, women often have distinct financial considerations. They are more likely to take time off work to raise children, which affects their income and retirement savings, says Moira Klein-Swormink, principal of Canada Branch Development at Edward Jones Canada.
The Organisation for Economic Co-operation and Development (OECD) found that women in Canada earn 17-per-cent less than men, one of the largest wage gaps among industrialized nations. A recent report also found Canadian women retire with 78-per-cent less wealth than men, but they have to make it last as they have longer lifespans on average.
Women are most often involved in caregiving roles, adding a layer of complexity and, in some cases, financial responsibility to their lives.
All of that points to the need to work with a financial advisor to be more self-assured around their wealth goals. However, Ms. Klein-Swormink suggests many women feel the financial industry does not cater to their needs. “Often they may have a perception that they’re not being spoken to in ways that help them build their acumen and understanding.”
Financial professionals traditionally focus on investment and asset management as opposed to whole-life planning. Much of the dialogue around wealth doesn’t resonate with many women, says Ms. Klein-Swormink.
At Edward Jones, she says financial plans are based on four pillars that are important to women. Beyond their finances, that includes health, family and purpose. Discussions are less about market risk or what investment strategies to choose, and more about discussing opportunities for themselves and their loved ones.
Moira Klein-Swormink, principal, Canada Branch Development, Edward Jones Canada.supplied
The firm’s advisors also employ tools that put women and other clients at the centre of each tailored financial plan. “Our MyPriorities tool, for example, helps clients think about all the wants, needs and goals they have and how to prioritize those. It’s all about drilling down into what really matters,” Ms. Klein-Swormink says.
While gender equality remains a work in progress, and despite the current income and savings gaps, there are signs of a shrinking disparity between men and women around personal wealth.
The percentage of businesses that are majority-owned by women is on the rise (18.4 per cent in 2023, compared with 15.6 per cent in 2017, according to federal government figures), and more women have made vertical strides in the workforce than ever before. Moreover, the baby boomer generation is aging, triggering the ‘great wealth transfer.’ As women live longer than men on average, female spouses stand to be the main beneficiaries.
“We know that women are going to hold much of the wealth in Canada in a short period of time. They are expected to control an estimated $4-trillion in assets by 2028, versus about $2-trillion today,” says Ms. Klein-Swormink.
That increases the urgency of getting sound advice. The right financial advisor can empower women to take greater ownership of and feel good about their financial futures.
Edward Jones recognizes too that female clients often want to see women as their advisors across the desk. That’s why 25 per cent of the firm’s advisors are women, among the highest percentage in the industry, with a goal of continuing to increase that share to reflect the Canadian population.
“It’s important that we close that gap because that’s what many Canadian women want, and it encourages them to seek help,” says Ms. Klein-Swormink.
Much is at stake, given the challenges women have faced in achieving full economic parity, and she says Edward Jones seeks to be part of the solution. “Women stand to lose a lot if they’re not educated well in personal finance.”
Women who may have traditionally ceded management of the investments to their spouses may face a risk. When thrust into the role of primary decision-maker, many can feel overwhelmed due to a lack of financial literacy.
“Women risk losing out on opportunities to attain financial freedom and overall financial well-being,” says Ms. Klein-Swormink. “We strive to create safe spaces that give women the confidence to ask all the questions they need. We want them to understand that it’s okay to be unsure, and that there’s a place where they can get the information to be sure they’re taking the right steps to achieve their goals.”
Advertising feature produced by Globe Content Studio with Edward Jones. The Globe’s editorial department was not involved.