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On the workforce front, there’s some good news for women and the advisors catering to them. Women are claiming an increasingly large percentage of the highest-paying jobs.
For the women themselves, that’s obviously good news because means they’re being recognized for professional achievements and earning more money is always a good thing. For advisors, this scenario is constructive because scores of data points and studies confirm that women are better investors and savers than men and they want more high-quality, professional financial advice.
Still, it's vital to understand the reasons why women are more apt to be risk-averse than men. An obvious is that there's still a significant gender pay gap in this country, meaning some women may be letting their compensation dictate investment decisions. Second, many women have gaps in their working lives to raise children or for other reasons.
On the other hand, women are making progress on the earnings front. Today, they represent 35% of those occupying roles in the 10 highest-paying professions, more than double the rate seen at the start of the 1980s. That’s something for advisors to consider.
Other Points for Advisors to Note
Advisors should also pay attention to how female clients are making their money – an important point of emphasis for advisors who cater to folks in specific industries or professions.
“Women’s presence has changed more noticeably in some of these occupations than in others. Since 1980, the share of women dentists has more than quadrupled (from 7% to 33%), while the share of women physicians has roughly tripled (from 13% to 38%). The share of lawyers who are women has risen from 14% to 40%,” according to the Pew Research Center.
Another reason advisors should be in tune with the point that more women are dentists, doctors, lawyers and the like is that many of the highest-paying jobs require advanced education. Translation: Plenty of female clients that have strong salaries may still be grappling with student loan obligations, making it difficult for them to adequately save for retirement and wring maximum benefit from workplace advancement.
“Some of these high-paying occupations – including physicians, lawyers, dentists and pharmacists – require specialized graduate degrees,” adds Pew. “One way that women have increased their presence in high-paying occupations is by increasingly earning degrees that are required for these jobs.”
Pay Attention to Age
It’s often said that “age is nothing but a number.” True, but it’s naïve to assume that the world sees it that way, particularly when it comes to employment.
Advisors have likely worked with clients that have been victims of age discrimination. Throw gender discrimination into the mix and it’s crucial that advisors be aware of female clients’ ages because, unfortunately, as women ages increase, so does vulnerability to pay gaps.
“The increase in the pay gap coincides with the age at which women are more likely to have children under 18 at home. In 2022, 40% of employed women ages 25 to 34 had at least one child at home. The same was true for 66% of women ages 35 to 44 but for fewer – 39% – among women ages 45 to 54. Only 6% of employed women ages 55 to 64 had children at home in 2022,” adds Pew.