Yes, we’re still talking about women: women in business; and in particular, women in financial planning. And yes, we still feel the need.
Women are, of course, mainstream. We are 50 per cent of the Australian population and are evenly represented in tertiary education and the workforce. But in so many ways we are still represented as a token, a niche market and a lesser voice. Women in financial planning comprise only 20 per cent of the estimated total of 16,500 planners in Australia.
Any industry that embraces the best talent available from the entire population will likely find more talent than one that routinely seeks the best talent from only 50 per cent of the population. Financial planning needs to ensure we’re bringing talent to the top from the whole population.
Only 31 per cent of Australians are currently receiving financial advice. There is a big opportunity to help many more achieve the peace of mind that they are doing the best they can to reach their goals.
Most people don’t know what financial planning is. They have never met a financial planner and they steer clear of the concept of seeking financial advice – they assume it’s expensive, and believe it’s only for those with lots of money to invest.
We, in the industry, know this is wrong, but we have a large task to educate people on what planners do, and how they can help.
Financial literacy is the beginning of appreciating the value of advice. And financial advice will play a more critical role as Australia’s superannuation system continues to grow and more Australians reach retirement age. We particularly need to help women because they generally have less money in retirement and need to make it last longer.
Changing our ways
Simply, we need to demystify financial planning. In the past couple of months I’ve introduced three close friends to financial planners because I could see their need. They somewhat reluctantly attended appointments but were unfailingly impressed at what financial planning can offer them.
And, of course, the more we mirror our clients, the more approachable we become – we need diversity of age, of gender and of culture. We need to let people know that financial planning is about listening to and understanding what people want in life and helping them financially reach those goals.
How will more female planners help?
We hope to deliver financial planning to more Australians by providing more targeted advice that better reflects the diversity of our community.
Financial planning began seriously in Australia in the 1980s. Many of us aged over 40 would not have been aware of financial planning as a career when we were starting out. Today, there are university degrees, and associations and career paths that can lead to financial planning. Students are becoming more aware of their options entering the workforce and this is a positive for the industry. Financial planning is also an ideal second career for those with life experience and prepared to undertake the education required. It’s flexible, great for people who are empathetic and who find it easy to have the conversations that result in the discovery of what makes someone tick.
If it’s better for us it’s better for you
The more appealing financial planning becomes as a career attracting the right people, the better it will be for the industry. We need to move beyond the planning reputation of old and be the people our clients feel represent them and their aspirations. And the best way is to be more like them in every way we can – and with financial nous to boot!
Venus is a new regular column appearing in Professional Planner.
