According to recent figures from Netwealth, which surveyed around 1,300 people, over a quarter of women are considering using a financial adviser.
But some groups have displayed more hesitancy than others. The report found that single women over 45 and widows are less likely to use an adviser, with 61 per cent and 75 per cent, respectively, noting that they would never consider turning to one.
Speaking to ifa on occasion of International Women’s Day, three women working in financial advice stressed that wealth managers need to appreciate that not all women are the same, and that women of all ages and backgrounds deserve quality advice.
Tracey Sofra, founder of WOW Women Group, told ifa that financial confidence “transcends to every other area of a woman’s life”, particularly for separated or single women who are responsible for their own significant financial decisions.
“We can progress through life on our terms without being economically compromised. Women are economically compromised every single day in their home, in their job, with their super and with their pay,” she said.
Donna Lee Powell, founder of DLP Life Design, held the same sentiment.
Ms Powell, who has experience providing for her family as a single mum, said she understands the significance of financial independence, especially in the face of unforeseen circumstances that can upend a woman’s life.
“I can acknowledge the struggles and frustrations, and even behaviours, they may have around money.”
Reflecting on her career, Ms Powell said that helping women gain financial independence, and in turn giving them greater choice and freedom in their day-to-day lives, brings her the “greatest joy”.
“Watching women grow, to move forward in their life, and build confidence to make good financial decisions is my purpose,” she said.
Meanwhile, Ms Sofra emphasised that advisers can instill confidence in women to pursue investing, a path that is often met with hesitancy from women.
“The minute we start talking about investing, there seems to be this notion of ‘I’ve never done that before, I don’t know what I’m doing.’ The interesting thing is men never think like that, even if they don’t know, they still have a crack,” she explained.
“That’s one of the barriers that stop women from investing. When they feel like they lack the knowledge.”
Ms Sofra assured that “financial confidence is not something we’re all born with”, and said that confidence will build only once women take the leap.
Advisers need to make women feel validated
Regarding the role of advisers, Adele Martin, the founder of My Money Buddy and the Savings Squad Podcast, emphasised that practices are accountable not only for addressing women’s needs, but also for ensuring that women feel validated in their pain points.
“When you see a financial adviser, it can be quite intimidating. People have a lot of self-worth tied to money. So if they feel like they should be doing better they might have some shame around it.
“Too often, the content I see advisers producing is generic — it could apply to anyone — and so it gets lost,” she continued.
Ms Martin provided an example of reaching out to women in their 30s or 40s through Facebook, where she posts about topics such as starting investments and planning for maternity.
However, both Ms Martin and Ms Powell agreed that clients are still largely sourced from referrals, and emphasised the importance of women having strong personal networks.
“By reaching out to their personal network, [women] can be connected to a trusted adviser who can provide them with not only the technical advice that they need but have the emotional intelligence required to support them,” Ms Powell said.
Ms Martin emphasised that advisers must find ways to cater to the individual needs of each client, who may not be aware of what they need and are relying on advisers to guide them appropriately.
Ultimately, Ms Sofra added that if women begin taking the steps towards achieving financial independence alongside an adviser, their confidence will liberate them in other aspects of their lives.
“If we get that right, then we don’t have to stay in abusive relationships, then we don’t have to stay in marriages that, economically, we can’t leave.
“Women need to invest in themselves as soon as possible … Start putting in the time it deserves for your future self, because she’s going to be waiting for you at the end of the line.”
