It is believed that having more female advisers in the sector could help women engage with financial advice and better plan for their future. The findings come in a survey by Fairstone, which incorporates one of the largest chartered planning firms in the UK, revealed that women are also more likely to seek financial advice when prompted by in response to a life event, such as divorce.
The survey results are more pertinent, given recent research by the Centre for Economics and Business Research, which revealed that by 2025, 60% of the UK’s wealth is predicted to be in the hands of women. We can see therefore that empowering women with knowledge and ensuring the engagement of women in the financial decisions and planning process, will be pivotal to their own financial success and that of the wider financial services industry.
Here Fairstone financial adviser Ruth Heath looks at the implications this could have for both financial advisers and their clients.
There are many reasons why women are not taking financial advice – feeling like they don’t have enough money to warrant it, or prioritising their partner’s financial planning above their own, both forming part of the picture.
Our survey revealed that women are often first motivated to seek financial advice when there is a significant life event such as bereavement or divorce, meaning that they could be facing difficult decisions while also dealing with the impact of a major change in circumstances. It highlights how vitally important it is for women to become financially educated and emphasises the value of starting the advice journey as early as possible so that they can feel prepared and supported when life events occur.
Tailored financial advice is critical for both short and long-term goals and for women, this is arguably more crucial, given that they are likely to live longer than men, meaning more retirement years to fund.
We need to look at how we make financial advice more accessible and inclusive, and advisers have a fundamental role to play. By helping to level the playing field, and through encouraging women to make the shift from saving to investing, we can allow them to compound their wealth and improve the long-term outlook for both their own lives and the legacy they leave for loved ones.
Encouragingly, the survey also revealed that almost half of female respondents (49%) felt that financial advice becoming the norm and starting that process at a young age, would be the biggest change within the sector in the future.
In a bid to raise awareness of the importance of tailored advice for women, Ruth will be hosting a webinar on September 22nd entitled ‘Empowering Women with Tailored Financial Advice’. She will look at what women should be considering at each stage of life and some of the decision-making tools available for building a strong financial plan.
|Sign up to webinar
|Subscribe to receive updates
*The Trustpilot figures are correct as of 13/09/2022