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With a persistent pay gap, longer life expectancies, and higher expectations and responsibilities to serve as caregivers, women have unique pressures and needs when it comes to managing their finances. As more women find themselves sandwiched between caring for their children and aging relatives, many struggle to balance their short-term responsibilities with their long-term financial plans.
Financial advisors can help women improve their financial confidence and well-being by providing investment guidance and sharing a holistic approach to long-term finances. By doing this, caregivers – especially those in the sandwich generation – can take one item off their mental load and know someone is prioritizing their needs and wants as well as monitoring their financial strategy and investments.
According to new research by Edward Jones, women face specific challenges when it comes to balancing finances and their family priorities. Nearly two-thirds of women in the sandwich generation (64%) reported that their caregiving duties have negatively impacted their ability to save toward their financial goals, and more than half say they reduced professional responsibilities due to caregiving, which has resulted in less income than they might have earned otherwise.
An uncertain financial outlook
Not surprisingly, these strains undermine confidence. Only 50% of women feel confident in their financial future, citing the many demands they juggle daily as the cause. In other words, the caregiving struggle is real – and without financial guidance or a financial strategy in place, millions of women are at risk of financial stress as they plan for and approach retirement.
Advisors should approach conversations with women with these insights in mind and help them set clear financial goals, whether that's building an emergency fund, saving for retirement, or investing in education. It is important to break these goals into manageable steps, prioritizing them based on their current situation and the barriers they're navigating.
Financial advisors can make inroads and help women in the sandwich generation determine their short- and long-term financial goals, develop a clear path to achieve them and strengthen their confidence. In fact, 51% of women said working with an advisor boosts their confidence.
Meeting client needs
So, what qualities do women seek in a financial advisor? They want someone who understands their financial goals and priorities (64%), is transparent about fees and charges (59%), and can help them identify and navigate future life challenges (50%). Building trust and reassurance in their financial health is imperative to developing a meaningful and long-term relationship with these women caregivers.
Women in the sandwich generation have their hands full, but their eyes on the future. They want a financial professional who gets them, guides them, and can make things easier.
Financial advisors can help them carve out space to work toward their goals – something they may not feel like they have time for otherwise. Their role is essential in providing women with the support and guidance they need to develop long-term savings plans and financial habits that can lead to financial security. Because when women thrive, families and communities thrive, too.
Lisa Peel is a principal at Edward Jones and head of financial planning. To learn more about this research, please visit www.edwardjones.com/womeninvestors.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.