Building relationships and creating a sense of belonging for people from all backgrounds has always been at the top of my values. To me, belonging means feeling valued, respected and included. It means having a voice and a seat at the table, being able to bring your whole self to personal and professional interactions without having to compromise your identity.
As someone who has been in the pensions sector for over 20 years and has taken part in various groups focused on cultural fit, inclusion, mentoring and sponsorship, I know how important it is to foster this sense of belonging – particularly for advisors and financial professionals who work with various clients. It's one of the many reasons I'm proud to work for Nationwide, the founder of Financial Alliance for Racial Equalitywhose mission is to increase racial diversity, foster greater equality and foster inclusion within the financial services industry and the communities we serve.
When advisors and financial professionals can connect with their clients, they can work with them more effectively, tailoring advice to their unique circumstances and background. In fact, this is what led me to work with my counselor. According to Nationwide's 2024 Advisory Authority study, when investors of color were asked what would make them more likely to work with an advisor, 20% said they look for financial professionals who offer personalized investment techniques.
Any time of year—and as we celebrate Black History Month—it's important for advisors to think about how they can connect with their black clients to help them build tailored plans to fulfill their dreams. their retirement, especially with 32% of black investors saying the main reason they have an advisor is to feel more secure in their financial future, according to Nationwide's study.
Better serving the black community is not only the right thing to do—it's also a great opportunity for counselors to grow their practices. Here are some tips to help advisors and financial professionals foster a sense of belonging with their black clients so they can create a solid retirement plan together.
1. Personalized financial planning for retirement is key
Start by tailoring the financial advice you offer to your Black clients, making sure it matches their unique goals and challenges, such as income level, family obligations, and philanthropic interests. This includes addressing factors such as the racial wealth gap, historical inequities, and specific financial aspirations within the community—factors that may influence black investors' risk tolerance, investment preferences, and retirement planning.
Consider strategies to bridge potential wealth gaps, which may include building emergency funds, focusing on debt reduction and increasing retirement contributions. You can also help your clients maximize their Social Security benefits by considering factors such as life expectancy, spousal benefits and the timing of claiming benefits. Work with your clients to develop withdrawal strategies that minimize tax implications in retirement and create income they will not outlive.
2. Use educational resources
Empower your Black customers by educating yourself on the unique historical and cultural context and influence that shapes their financial experiences. One way to do this is to look for educational resources that highlight special considerations for different customers. For example, the National Pension Institute offers continuing education offerings designed to help you deepen relationships with your customers, and ours Program of different markets offers great resources to help you learn about best practices for engaging diverse customers.
3. Offer mentoring and networking opportunities
Being an ally is a choice that goes beyond passive support; it is a long-term commitment to protect others. I am proud to be part of a company that makes the conscious choice to be an ally. In fact, as president of Nationwide's African American women's resource group Active and Ready to Exceed, we are offering special programming this month about how important the alliance is and how it can inspire and empower others.
For financial advisors, allyship can look like using their unique connections to provide mentoring and networking opportunities for their diverse clients. Help your clients connect with successful individuals who have navigated similar journeys to boost their confidence and provide valuable insight.
Representation also matters. Encourage more black financial professionals to enter the industry and mentor them. Having counselors who understand the unique challenges black clients face can increase trust and communication.
Lastly, but perhaps most importantly, listen to Black voices. Ask them about their needs, concerns and aspirations. Invite them to share their thoughts and insights on various issues. At Nationwide, we've learned that incorporating diverse perspectives is a great way to avoid groupthink and help a team think outside the box when addressing challenges and opportunities.
Black History Month is a great time to commit to more actively engaging with new and existing Black customers by understanding their specific needs and providing personalized guidance. By doing so, advisors can grow their practice while empowering their clients to achieve a more secure financial future.
Paula Cole is Vice President of Nationwide Pension Risk Transfer