How advisors can help women achieve greater financial security

Recent surveys have shown that women not only are less financially secure than many other demographic groups, but they also tend to be a parent caregiver, further adding to financial stress. So what can advisors do about this? Asalyn Coachman of Financial Architects advisors need to educate women on their longer life expectancy compared with that of men and the financial implication of living longer. Some steps include:

1. Estate planning should be done and reviewed regularly. Women must have powers of attorney for their financial and health care decisions, in addition to a will and possibly a trust.

2. Financial security is defined differently for each woman; advisors need to take time to ask questions to be clear on her goals.

3. Teach women the difference between savings and investing. Set up and contribute to a savings account with periodic payments to themselves to grow a personal reserve fund.

4. Women must protect their credit scores.

‘Use your words’ when communicating about retirement

While there is no best single way to effectively speak to Americans about retirement, the language used in retirement communications is often a more dependable way to communicate than imagery is, according to research by Capital Group.

“This research makes clear that both the language and imagery we use in retirement communications do matter in making an impact on people and inspiring them to take action,” said Toni Brown, head of retirement strategy at Capital Group.

The audience’s age, for example, strongly influences preferences for both written messages and imagery. Smarter/better messages — for example phrases like “saving smarter for retirement” — appeal the most to Gen X investors who want to know that their money is working for them to the greatest extent possible. On the other hand, boomers can find such language patronizing or condescending.