More educated, wealthier and better paid
Over recent years, Canadian women have made remarkable strides in education, workforce participation, and wealth ownership. Nearly 60% of postsecondary graduates are now women 1, a figure that exceeds their demographic weight. Their level of education has surpassed that of most Canadian men, with a higher proportion of women with a bachelor’s degree. 2
This educational advancement has contributed to narrowing the wage gap. While men continue to earn more, the salary gap in their favour has continued to shrink among workers aged 20 to 54 years, going from 16% in 2007 to 12% in 2022. 2 Advances are also noted in the workplace. Though women are still underrepresented, they hold close to a third 2 of managing positions in businesses.
Women own more wealth
By 2028, it is projected that
Canadian women will control nearly $3.8 trillion in financial assets –
or more than one third of the country’s total –, up from the $2.2
trillion in 2019. 3
Key factors contributing to this growth are increased income levels, greater representation in senior management and entrepreneurship, and their position as main beneficiaries of family wealth transfers in the coming years, whether as partners, daughters or granddaughters.
Distinct realities and challenges
Despite these significant gains, women still encounter unique challenges that can influence their financial situation and retirement planning:
Retirement savings
On average, women save less for retirement than men, with men’s median RRSP contribution 50% higher4. In addition, men make up 53% of RRSP contributors, despite being less than half the Canadian population.
TFSAs: an inspiring example
TFSAs demonstrate that positive changes in savings habits are possible. Unlike RRSPs, more women than men hold this popular savings tool5. Wealth advisors can highlight this inspiring trend to encourage female investors to adopt similar retirement savings habits.
Income instability
Income instability is reported as a more prevalent concern among women, with 41% expressing worries about income security, compared to 30% of men.6
Sole family support
Women are more likely to care for children or elderly parents, to pause their career or to be single parents, which can increase financial pressures. They are also more exposed to financial risks from divorce or losing a spouse.
They also outlive Canadian men by 4.5 years on average 7, making long-term planning and asset accumulation especially important.
A different perspective on investment and advice
Women are typically long-term investors and often have a unique perspective on investing. In an industry survey, for instance:
- 51% said they stay invested during market volatility, versus 43% of men. 6
- Investment participation rates among women increased with younger generations, reaching 71% for Gen Z compared to about 55% for baby boomers and GenXers. 6
- Women were less likely to embrace self-directed investing. 6
Did you know?
A higher proportion of women than men
surveyed reported that wealth advisors influenced their decisions
regarding financial investments. 8
Main concerns and expectations
Many women prefer to invest according to their personal goals and life events, rather than mainly focusing on maximizing returns. In the short to medium term, they especially prioritize 9:
- Paying off debt
- Creating or updating a budget
- Building emergency funds
Over the long term, they may focus on how their investments can enhance their quality of life and their family's, fund their children's education, make travel or retirement plans possible, or leave an inheritance. It’s essential for women to understand their investments. When informed, they often take similar risks as men and become more confident in their decisions.
Adapting your advisory strategy
Women seek trust-based, long-term relationships with their wealth advisors. This expectation can benefit both parties: female clients who feel valued and understood show greater loyalty and are, on average, 2.5 times more likely than men to make referrals. 10
Investment specialists can help women reach financial independence and grow their wealth by offering comprehensive expertise and honing key interpersonal skills such as:
Active listening
Women value wealth advisors who truly listen and take the time to recap their needs and goals.
Beyond the financial aspects, it is essential to discuss life priorities, what they want to protect and long-term aspirations.
Relationship-based approach
Women often prioritize relationships over technical aspects.
Using inclusive terms like "we," "you" and "us" can help build connections. When meeting couples, it’s essential to engage female clients as individuals and listen to their perspectives.
Goal-focused advice
Women value a collaborative planning approach. Setting clear, measurable and achievable goals in partnership ensures alignment with their goals and priorities.
Similarly, they appreciate practical and actionable advice. For instance, advisors should link recommendations to their life events and needs, rather than focusing on facts and figures.
Transparency
Clearly communicating fees further promotes transparency and trust.
Additionally, admitting in a meeting that you don't have an answer, for instance, then quickly following up with the missing information, can strengthen client relationships.
Financial literacy
Wealth advisors should skip jargon and instead educate clients to build their financial confidence and knowledge. They may share credible reads, websites and podcasts, or offer workshops.
Women should also be informed about key documents like wills or powers of attorney, and have them in place.
Flexibility and networking
Women often balance work and family, potentially making in-person meetings challenging. Wealth advisors can help by providing flexible options such as online appointments.
Attending female-focused events can also help them understand this demographic, expand their network, and gain new clients.
Canadian women are increasingly important financial decision-makers and asset owners, presenting both new challenges and opportunities. Wealth advisors who adopt a customized and empathetic approach can help female investors reach their goals. By taking the time to truly understand each woman's individual needs and priorities, they will not only contribute to their clients’ financial success but also their own.
Learn more
Complete our free online training, "Women and wealth," and obtain 1 PDU (Professional Development Unit) using your broker code and rep code on our Continuing Education Portal. For more information, contact your NBI sales representative.
Sources
- Statistics Canada, Table 37-10-0020-02 Proportion of male and female postsecondary graduates, by institution type and status of student in Canada.
- Statistics Canada. Women in the labour market: Increased potential, pay, and participation.
- Canada Perspectives: Women, Money, and Wealth, Women of Influence, October 23, 2024.
- Statistics Canada. Table 11-10-0044-01 Selected characteristics of tax filers with Registered Retirement Savings Plan (RRSP) contributions.
- Canada Revenue Agency. Tax-Free Savings Account 2022 Statistics (2020 contribution year).
- CIRO, 2024 Investor Survey, May 2024.
- Statista, Life expectancy at birth in Canada from 2012 to 2022.
- Statistics Canada. Gender differences in the financial knowledge of Canadians. March 2016.
- Strategies for attracting and supporting women investors: the Fidelity perspective, May 2024.
- Mackenzie Private Wealth, Women and wealth – time to step up and answer the call, p. 9, July 2021.