As the baby boomers age, the number of widowed female clients is expected to increase, thanks to women’s longer life expectancies. So, financial advisors with older clients should be prepared to deal with widowed women.
Clients should not try to separate financial issues from emotions when they become widowed — and neither should their advisors — says Bev Moir, senior wealth advisor with ScotiaMcLeod Inc. in Toronto.
For senior women who have dedicated the majority of their lives to caring for a spouse and children, widowhood can be emotionally devastating and can leave them in a vulnerable position. According to Statistics Canada, many widows find their standard of living declines almost immediately.
“Clients may not feel capable of making any financial decisions,” Moir says. “But these decisions still have to be made.”
You can help your widowed clients by providing the right resources to help them remain in control of their finances.
Here are three ways you can help your widowed clients:
1. Be receptive to their feelings
“When I’m booking a telephone appointment or a face-to-face meeting with a client, I always have an agenda,” Moir says. “But, when I’m working with widows, my agenda doesn’t always come first.”
A widow may want to talk about her emotional concerns, and you should encourage her to do so. The act of simply listening is one effective way to provide support.
2. Allow time for decision-making
Grieving clients need more time to sort through the financial process, Moir says, especially if their spouse passed away unexpectedly. Your widowed clients will probably need more time than your typical client to think over important decisions. These clients are still trying to make sense of their future, Moir adds.
If the your widowed client was not in control of the family’s finances when her husband was alive, she may be faced with a difficult learning curve. You may need to step in and provide some educational guidance, Moir says, while making sure not to alienate your client with heavy jargon and technical terms.
3. Stay flexible
Adopt a “go with the flow” approach when working with widowed clients, Moir says. Discussions surrounding the future can be particularly overwhelming during the grieving process. If your client is in a deeply emotional state, she may need to cancel or reschedule an appointment without much notice.
Consider including members of your client’s support system in these meetings, Moir adds. If your client puts a lot of trust in a family member or life coach, adding a third party to the meetings could make the financial planning process easier.
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