We need only to think of our own relationships to know that women and men often behave differently in any given situation. It’s no different when it comes to money matters.
Yet communications and education around financial planning can do a lot more to take women’s views into account. “If we’re wired differently, the conversations we need to have to help our clients need to be positioned differently,” said Rahim Peera, Senior Vice-President, Group Retirement, Penmore Financial Group (a member firm of Benefits Alliance) during a recent podcast by Benefits Alliance Voice.
Women are generally more emotionally self-aware as well as more conscious of other people’s emotions. These traits affect financial decisions, noted Alice Ambrosie, Director, Advisor and Client Experience at Fidelity Canada. At the same time, women’s attitudes toward money can involve feelings of insecurity brought on by childhood experiences, wage gaps and interpersonal relationships.
“Women are…quick to criticize themselves in terms of how they are with money,” said Ambrosie, who added that a common refrain from women is, “‘I’m terrible at numbers. I just let my husband do it.’”
Retirement income especially needs to be an area of focus. Sixty-four per cent of Canadian women don’t feel prepared for retirement compared to 49 per cent of men, according to a 2024 survey by Healthcare of Ontario Pension Plan. “We need to ensure that women are financially prepared for retirement, that they have what they need and they are set up for success for the long term,” stressed Ambrosie.
The podcast, entitled “The Difference Between Men’s and Women’s Investment Habits”, explored how communications and education can be adjusted to better reflect women’s mindsets and objectives. This article highlights a few of the action steps.
Have conversations
Peera called out that most engagement strategies for financial planning and investments are geared toward a male mindset. For example, the content of presentations at employee group meetings tend to be linear or sequential in approach, proceeding from one step in the financial-planning process to the next. While that information is important, advisors often find that women’s priorities and concerns come out during the Q&A at the end of the session.
To bring women into the conversation sooner, start with a few open-ended questions. “We need to be starting with, ‘What is on your mind today? What is keeping you up at night?’” suggested Peera.
Boost confidence
Compared to men, women “are much more likely to assume that [their financial literacy] is not enough,” said Ambrosie. Unfortunately, some even “do not feel like they have the right to make financial decisions.”
Plan sponsors can make a huge difference by offering financial literacy programs that include more dialogue during sessions, mentorship programs, forums and chats. “Those are the things that tend to make a really big difference,” said Ambrosie, as they allow women to share their concerns and in so doing identify exactly what financial advice they need.
The right advisor
Women also respond best to advisors with a high level of emotional intelligence, who seek to understand personal situations and don’t shy away from discussing “what’s on their [client’s] mind, the things that they’re worried about. Advisors need to be able to navigate those conversations,” said Ambrosie.