Ready to Mingle: What Advisors Need to Know About Advising Single Women

It’s a she-conomy.

Women are putting off major life milestones, like getting married and having children, until later in life as careers take center stage. Nearly half of US women from 25 to 44 will be single and childless by 2030, with their rate of singledom rising faster than the rest of the population, according to a recent Morgan Stanley report. The shift has profound consequences for the future of wealth distribution, as trillions move into the hands of these women, the primary financial decisionmakers in 72% of households, according to data cited in the report. Advisors can help by being proactive before these major life events happen.

“A lot of people I talk to who are younger, in their mid-20s, need a little bit of advice right now,” said Crossan Ryals, a wealth manager at RFG Advisory who works with single women. “They might not need to fully be a client yet, but [they should] have things in place and a financial plan so that when it does come time for these big life moments, they’re prepared.”

Laying the Groundwork

Women may be delaying having children, but it varies greatly depending on location, Ryals said; in her state of Alabama, many of her clients got married in college. But skyrocketing childcare costs mean that by the time women do have kids — around age 27, on average — a proper nest egg is not optional. “There’s so much going into child planning that [some women] are planning it down to the month so they get the most out of PTO and maternity leave,” Ryals said. “They’re looking at options where they feel like they have more liquidity, not having to worry about the tax implications of long-term holds.”

Planning for big life events is important for all single women, but there are variations in how to approach each group depending on their situation, according to Jesica Ray, a CFP at Brighton Jones:

• For single women who have no kids and have never been married, the focus should be on financial education.
• Single, divorced women with no kids should focus on rebuilding and increasing financial independence.
• For single divorcees with children, ensuring that any future marriages account for the kids is key, as well as suggesting that finances be kept more separate. “We often see more boundaries around future financial partnerships,” she added.

Freedom to Finance. On the whole, Ray said the biggest concern single women face is the mental load of navigating skyrocketing costs and saving for retirement, all while figuring out a way to make the childcare budget work. But the pros of putting off kids and marriage outweigh the cons, she added. “These women feel relief that they’re not stuck, that they have choices, and they are thinking about financial preparedness,” Ray said. “They’re focusing on mental well-being and long-term goals around careers, and aspirations to do both.”