Leadership & Opportunity - New Stats on Dual Earners Point to New Needs in Financial Planning
Statistics Canada released two studies in April that point to a need for a different approach to financial planning for dual earning couples in Canada and, in particular, for highly educated working women, who have recently closed the earnings gap with their male counterparts. Advisors in the know about needs of this constituency have a great opportunity to win trust and provide ongoing service to this demographic.
According to the study entitled Hours and Earnings Of Dual-Earner Couples released on April 24, 2009, the gap has been closing on the difference in earnings and working hours of Canadian husbands and wives. From 1997 to 2008, the average weekly hours worked by wives increased steadily, while during the same period, husbands were putting in fewer hours on the job. At the same time, women's average weekly earnings increased at a faster pace, although most dual earner wives still contributed less than half of the total family income.
Education is one of the reasons for the closing of the earnings gap. The National Graduate Survey, published on April 22, noted ìshowed differences in terms of earnings from one level of education to another. The largest earnings gap existed between the bachelor's and master's levels, suggesting that investing in further postgraduate work is financially beneficial.î
The survey also showed that the employment rate among master's graduates remained stable for men at 94%, while it rose for women, from 89% in 2002 to 92% in 2007. Consequently, among graduates with a master's degree, the gap in employment rates between women and men nearly closed. Further, a higher proportion of graduates of master's programs were working full time in 2007, compared with college, bachelor's or doctorate graduates. A link to the study is available
here.
These statistics tell an interesting story of the ìideal clientî for investment and retirement planning services. Financial advisors will in fact be planning for two retirements and tapping income and capital from multiple public and private pension accumulations as well as a variety of capital accounts from each member of a dual income family. High levels of education and experience will lend to a different relationship, as clients will demand more information and involvement in decision-making. This changed reality requires a different approach, new processes for specialized retirement and investment planning services, and leadership in preparation of a support team to assist with providing services to these new clients.
Leadership and Opportunity in Turbulent Times, the theme of this year's Distinguished Advisor Conference broaches these new demographic issues with experienced advisors at this year's event, being held November 8-11 in Tucson, Arizona. In fact, the roster of speakers on the substantive agenda are reflective of a new guard of leaders in financial services as well, featuring a number of high profile women:
- Lisa Langley, Executive Director, International Money Management Institute covers Compliance Issues in Managing Wealth
- Nicola Elkins provides insight into Mastering Your Philanthropy
- Robin Taub, CA and Wayne Cadogan, Regional Director, Investor's Group offer a male-female discussion of Character-Based Leadership
- Kerry Breeze, Publicist, tells us how to Blog, Twitter and Tweet Your Way to Success
- Evelyn Jacks, President, The Knowledge Bureau will speak on the discipline of team-based Real Wealth Management
For more information and to see the full conference agenda, visit the Knowledge Bureau's website at www.knowledgebureau.com/DAC.
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