Sallie Krawcheck’s Solution to the Retirement Crisis
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Sallie Krawcheck is a woman with a cause. She has a solution to the retirement crisis and a strategy for advisors to grow their female client bases.
Increasing the economic engagement of women in the workforce will avert the pending retirement savings crisis, she said. It will provide women with the necessary tools to manage their increasing wealth and provide advisors an opportunity to grow their businesses in an underserved market.
Krawcheck sees her solutions as a win-win-win for women, the economy and the advisory profession. She spoke to an audience of advisors during lunch at the Morningstar Investment Conference in Chicago on June 25th.
Krawcheck is the chair of Ellevate Network, the global professional network with thousands of women from across industries. Ellevate Asset Management has partnered with Pax World to create the Pax Ellevate Global Woman’s Index Fund, the first and only mutual fund of its kind, investing in the 400 top-rated companies in the world for advancing women. These businesses are united in the recognition that investing in women is simply smart business. Krawcheck is the former president of the Global Wealth & Investment Management division of Bank of America.
Krawcheck said her female-centric solutions would help alleviate the following paradoxes:
The U.S. is the wealthiest country but also has a $14 trillion retirement savings crisis.
U.S. women’s wealth is growing faster than men’s, but the retirement crisis is worse for women who outlive their male counterparts and are poorly served by the advisory profession.
Women are the target market opportunity to alleviate the above paradoxes. Krawcheck attempted to open the eyes of a largely male audience. She prefaced her female-centric thesis by stating that she “loves middle aged white guys and has actually been married to a couple of them.”