Planning for the Female Financial Perspective
Josh Ver Hoeve, VP of Annuity Sales
(Asset Marketing Systems)
Women may represent the single largest business opportunity over the next several decades. Here is just a sampling of why:
- Women control an ever-increasing percentage of the personal wealth in this country – with estimates as high as $14 trillion – 51% of the current total
- 67% of the nation’s assets are anticipated to be in women’s hands by 2020
- 40% of women out-earn their husbands
- Women continue to statistically outlive men
- Women’s financial lives are also often more complex than men’s as they may need advice surrounding their roles as primary caregivers for not only their husbands but also their aging parents
- As women age, their longer life spans leave them more susceptible to suddenly taking on additional financial responsibilities later in life
- 80% of women switch advisors within a year of their husband’s deaths
- 73% of women report being unhappy with the financial services industry
- 87% say they can’t find an advisor with whom they can connect
The industry needs to stop treating women as a little niche that it can possibly serve. They are the market. In fact, according to statistics, women make 80% of the purchasing choices in the current market. As baby boomers age and husbands die in unprecedented numbers, women are taking control of increasing amounts of wealth. It is no secret that women view money and money matters much differently than men do.
Women tend to view investing as a way to preserve their wealth as compared to the male view of investing as a way to increase their wealth – Men tend to be more willing to take risks, or at least risks that offer greater reward and failure than the ones women will take.
Women – especially widows – want to know how they can protect their lifestyle and not become a financial burden on their children.
The greatest risk women face in retirement is LONGEVITY! Longevity means that women have a higher risk of suffering debilitating illnesses, spending more on healthcare costs, and have a higher risk of ending up in skilled nursing care. Living longer means that women need to make sure that their money lasts as long as they do.
To help women plan for retirement, we need to help them grow and protect assets, and account for the traditional risks, like inflation, taxes, market risk, as well as a focus on longevity risk, including planning for health care costs and the likelihood of needing some form of Long Term Care at some point. Remember the goal of most women, is to never be a burden to their children. If we can help them put that fear and worry to rest, we will allow women to live their BEST lives in retirement.
Perhaps one of the best product solutions is an Asset Based LTC/Life policy or Asset Based with Chronic life insurance policy. These policies can be designed to protect women from many of these risks while adding additional protection benefits when a spouse passes the passing of a spouse. There are so many products to fill these needs.
Click here to download Asset’s new client approved brochure called Understanding The Importance of Long-Term Care and call the Asset Life Department to have us run an illustration for you at 888-303-8755.
1 Ryan Gorman. Business Insider. April 71 2015. “Women now control more than half of US personal wealth, which ‘will only increase in years to come,”‘ http://www.businessinsider.com/women-now-control-more-than-half-of-us-personal-wealth-2015-4.
2 Judy Paradi and Paulette Filion. Strategy Marketing. 2016. “Financial advisors are failing women: What female clients really want and how to change the dialogue.” http://www.etfcm.com/womenmoney/include/wadvisors-failing-woman.pdf.