A welcome growth in women's wealth needs planning for the future

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A welcome growth in women's wealth needs planning for the future

In recent years, sharp focus has been placed on the gender divide across pay, employment status and treatment in the workplace. While there are narrowing gaps between men and women in many areas of work life, there are gaping chasms in others.

One area where the two sexes are coming closer together is in wealth, with the amount of money that women have growing substantially over the last decade. And with that has come a growth in the amount they have been contributing to their pensions.

Due to the still predominant traditional employment models, pension planning is of enormous importance, especially for women

Research from the Boston Consulting Group found that in the years between 2010 and 2015, the private wealth held by women had grown from $34tn to $51tn. By 2020, this is expected to have reached $72tn. With that growth in wealth has come a corresponding rise in the amount of pension contributions to secure their financial future.

However, frequently pension planning has been focused mostly on men and has not taken into account the needs of women - despite their growing contributions and the clear importance of structured planning for financial security post-retirement.

“Due to the still predominant traditional employment models, pension planning is of enormous importance, especially for women," said Thomas Wyss, head of wealth planning at Lombard Odier & Co Ltd Zurich.

At Lombard Odier, we place special focus on pension planning for women. At a recent event surrounding investment advice run by the Lombard Odier office in Zurich, Wyss outlined that one third of people with a higher education consider financial security in retirement to be complicated.

He told the audience at the event "Investieren von Frau zu Frau" that in order to optimise finances for retirement, it is important to carry out an analysis of a client's resources now. "The financial situation must be reviewed and the wishes for succession evaluated. In many cases, too little use is made of the possibilities in connection with one's own pension provision. There is considerable potential for optimisation both in the active years and with regard to retirement. This can only be fathomed with comprehensive advice," he said.

For spouses, it is particularly important to prepare an advance care directive document, he told the audience. In the case of incapacity, it means someone can shape their affairs and for a trusted person to act in someone's interests and be represented in legal issues.

At Lombard Odier, we are proud to support such projects as they illustrate the growing value of women in the economy, both now and in future years.

Gender equality is a priority, that is why Lombard Odier initiated the “Investieren von Frau zu Frau”, a bespoke series of up to 4 events every year where women are updated on financial and investment insights. Usually between 15 and 20 attendees gather and take advantage of the networking opportunities. In addition to this, the Lombard Odier office in Zurich supports initiatives such as the Womenʾs Circle, a club for dedicated women which regularly organises lectures on current topics from business, politics and environment to personal development. At Lombard Odier, we are proud to support such projects as they illustrate the growing value of women in the economy, both now and in future years.

With our events series in an informal setting, we at Lombard Odier want to offer women the ideal framework to acquire more knowledge in the field of finance and investments.

“With our events series in an informal setting, we at Lombard Odier want to offer women the ideal framework to acquire more knowledge in the field of finance and investments," said Karin Brogle-Fleischli, senior vice-president, Lombard Odier & Co Ltd Zurich.

Important information

This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

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