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Pattie Lovett-Reid

Chief Financial Commentator, CTV

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ANALYSIS: It is considered to be an untapped high potential market with many financial institutions vying for a piece of the action. Female clients present a huge opportunity as women deal with challenges such as divorce, widowhood and the deterioration of health. According to Sun Life Financial, almost one-third of Canadians experienced one or more unexpected life events in 2015.

Here’s what we know – 90 per cent of women will become single during their adult lifetime, leaving them entirely responsible for solely managing their financial situation. Yet, according to Deanne Gage, author of Suddenly Single, 80 per cent of women leave their advisor within 18 months of becoming a widow and here’s why – they often feel overlooked and undervalued. Their advisor only dealt with their husband and made no efforts to engage them. When their husband died, they simply felt no loyalty towards their advisor so they moved their account.

It has become clear that women are living longer and, in many cases, more productive lives, according to recent discussions at the Sun Life Global Investment Women’s Investment Symposium. The probability at age 65 of living to age 80 for a woman is 76 per cent versus 65 per cent for men; and fast forward to age 90, the numbers are 38 per cent and 24 per cent, respectively. Herein lies the opportunity: 2 out of 3 women do not work with a financial professional and only 55 per cent have a financial plan.

The Centre for Talent Innovation challenges advisors to focus on harnessing the power of the purse. Sixty-seven per cent of women feel misunderstood by their financial advisor and 87 per cent of women looking for an advisor say they just can’t find one they can connect with.

Women need advisors more than ever and once advisors embrace the opportunity they will find that:

1) Women make very loyal clients and if they’re happy with the service they receive, they could potentially stay with their advisor longer than their male counterparts.

2) Women’s assets are continuing to grow through entrepreneurship, education and inheritance.

3) Women make more client referrals over their lifetime.

Women are not looking for special products or services targeted to them but they are looking for the an advisor who understands their needs as investors. Tap into the women’s market and you are tapping into a big business.

As the Chief Financial Commentator for CTV News, Pattie Lovett-Reid gives viewers an informed opinion of the Canadian financial climate. Follow her on Twitter @PattieCTV