For centuries, financial systems and workplace structures have been designed around male-dominated economic participation. Women’s financial independence is a relatively recent development in many parts of the world, shaped by historical barriers such as wage discrimination, restricted access to credit, and societal expectations around caregiving. The political and legal landscape has gradually evolved—women in Canada and the U.S. only gained full financial rights in the mid-to-late 20th century—but systemic challenges persist.
The gender pay gap, career interruptions, and disparities in wealth accumulation are not accidental; they are the result of long-standing policies, workplace norms, and cultural expectations. Even as financial independence becomes more common, women continue to navigate unique obstacles that affect their earnings, investments, and retirement security. Understanding these challenges is the first step toward overcoming them.
For centuries, financial systems have been built around male-dominated workforce participation, leaving women to navigate structures that were never designed with their financial realities in mind. Although women in Canada and the U.S. only gained full financial rights in the mid-to-late 20th century, they have since become major economic players—leading businesses, building wealth, and making key financial decisions for their families.
Yet, despite these gains, systemic challenges persist. From the gender pay gap to career interruptions, longer life expectancy, and differences in investment confidence, women continue to face financial hurdles that impact their ability to accumulate, manage, and pass down wealth. Many of these challenges are deeply rooted in historical workplace norms, cultural expectations, and outdated financial structures that don’t reflect modern realities.
For financial advisors, understanding these challenges is essential. Women are set to inherit trillions in wealth over the coming decades, making them one of the most influential client segments in financial planning. Advisors who adapt their approach—prioritizing education, transparency, and relationship-driven advising—will be best positioned to serve and retain female clients in this new era of wealth management.
This article explores five unique financial challenges women face and provides actionable insights for financial advisors to better understand, engage, and support their female clients.
Challenge 1: The Gender Pay Gap #
One of the most persistent financial challenges is pay inequality. Women in Canada earn about 87 cents for every dollar earned by men—a gap rooted in historical wage suppression, occupational segregation, and undervaluing of female-dominated industries. While laws have been enacted to promote pay equity, systemic biases and slower career progression for women continue to widen the income disparity.
Challenge 2: Balancing Career and Family Responsibilities #
The modern workforce remains structured around outdated assumptions that caregiving is primarily a woman’s responsibility. On average, women in Canada spend 50% more time on unpaid household work than men. Maternity leave, while an essential right, often leads to slower career advancement, wage stagnation, and reduced retirement savings. Many women struggle to balance professional growth with caregiving, making workplace flexibility a crucial yet underdeveloped solution.
Challenge 3: Planning for Longevity #
Women live longer than men, yet financial planning frameworks have historically been modeled around shorter lifespans and traditional family structures. With an increasing number of women managing their finances alone in later years, there is a heightened need for proactive retirement and estate planning. The challenge isn’t just saving enough—it’s ensuring financial security in an era where pensions are shrinking, and the cost of long-term care is rising.
Challenge 4: Investment Confidence and Risk Tolerance #
For decades, investment markets have been tailored to male-dominated decision-making, with financial products and advice historically overlooking women’s financial priorities. Women tend to take a more analytical, values-driven approach to investing, favoring assets that align with ethical and social considerations. While often perceived as risk-averse, this approach is actually strategic—women are more likely to rely on data rather than intuition. The key challenge is closing the investment knowledge gap created by decades of exclusion from financial education.
Women’s investment behavior is also influenced by how financial advisors communicate with them. The Merrill study found that women advisors tend to use more positive, goal-oriented, and collaborative language when discussing financial plans, while male advisors are more likely to focus on risk and performance metrics. This difference in communication style impacts how confident female clients feel about investing—women are 2.5 times more comfortable taking investment risks when working with a female advisor compared to a male advisor.
Challenge 5: Generational Differences in Financial Confidence #
Generational shifts in financial independence highlight how changing access to education and policy reforms have reshaped women’s financial confidence. Millennial women are far more engaged in their finances than previous generations—70% say they lead financial decision-making, compared to 40% of baby boomer women. This rise in confidence correlates with higher educational attainment; 91% of affluent millennial women hold university degrees, compared to 80% of their baby boomer counterparts. However, lingering biases and systemic barriers continue to limit financial equality.
What All This Means for Financial Advisors #
As women’s share of global wealth continues to rise, advisors must adapt their approach to better serve female clients. To attract and retain female clients, financial planning must be more personalized, transparent, and education-driven than ever before.
Women value a clear and comprehensive view of their finances, new investment opportunities suited to their goals, and money-saving strategies tailored to their unique circumstances. More than ever, advisors have the opportunity to demystify investing, shifting the conversation from complex jargon to clarity and empowerment.
To attract and retain female clients, financial planning must be:
- Personalized: Women seek financial strategies that align with their values, long-term security, and life goals, rather than one-size-fits-all investment plans.
- Transparent: Clarity and trust are critical—female clients respond better to education-driven conversations rather than aggressive sales tactics.
- Collaborative: Women tend to view wealth as a tool for stability, family support, and legacy-building, so financial discussions should be framed with long-term, purpose-driven outcomes in mind.
Financial professionals who invest in building relationships, demystifying investments, and creating an advisory experience tailored to women will be well-positioned to thrive in the next era of wealth management.
For a deeper dive into how financial advisors can better support and engage female clients, read our full article: The Wealth Shift Advisors Can’t Afford to Ignore.
