Women need tailored financial advice, but most financial advisers miss the mark

Many financial planners are not meeting the needs of female clients. Find out why women need tailored financial advice and learn how Lottie Kent can help.

Women today are more financially independent than ever. Indeed, according to Forbes (12 November 2024), women are expected to control over 60% of the world’s assets by 2030.

Yet, recent data published by Schroders (22 May 2024), suggests that most financial advisers aren't quite meeting the needs of their female clients.

The findings revealed that female clients were much less satisfied with the service they received than their financial advisers believed them to be.

Read on to find out how some financial experts are missing the mark when supporting women, and discover several key reasons why women need tailored financial advice.

Some 62% of advisers say they do not differentiate their service based on gender

This finding in the study by Schroders and Ad Lucem (3 August 2024), might partially explain why some women feel dissatisfied with the service they receive from financial advisers. 

Indeed, the research revealed that there was a disconnect between female clients’ financial requirements and advisers’ understanding of them. For example, only 46% of women felt they had adequate protection in place for illness, but more than 60% of advisers thought they had appropriate cover.

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Source: Schroders (22 May 2024)

This data highlights how some financial professionals are missing the mark when it comes to providing the tailored support women need and deserve.

Perhaps this is unsurprising as women remain underrepresented in the financial planning profession. According to IFA Magazine (5 September 2024), only 16% of financial advisers in the UK are women.

Yet, a report published by Professional Adviser (8 March 2024) has shown that 69% of women prefer working with a female financial adviser.

So, many women may not be receiving the financial support they want or need.

Women have unique financial planning needs that require a bespoke approach

There are several reasons why tailored financial advice is so important for women. Here are three.

1. Women may need to save more for their retirement, yet they could face barriers to achieving this

Data from the Office for National Statistics (ONS; 23 October 2024) shows that in the UK, women outlive men by approximately four years on average.

This greater lifespan means that women need to plan carefully to ensure they have sufficient wealth for a potentially lengthy retirement along with the medical and social care costs that could arise in later life.

Additionally, your female clients may need to overcome gender-specific obstacles to accumulate the retirement wealth they desire.

While women’s wealth is increasing, there remains a gender pay gap that stands at 7%, according to the latest ONS (ONS; 29 October 2024) figures.

Not only could lower pay make it harder for women to build the retirement savings they need, but it could also contribute to the gender pension gap. According to the 2024 gender pensions gap report published by NOW: Pensions, women retire with just £69,000 in their pension pot on average compared to £205,000 for men.

What’s more, this gender pension gap could be exacerbated if you have female clients who get divorced and fail to include a pension sharing arrangement in their settlement.

Tailored financial advice could help women address these unique challenges and craft a plan that aligns with their specific circumstances and retirement aspirations.

Read more: Why divorce can play a major part in exacerbating pension inequality in the UK

2. The gender investing gap could put women at a financial disadvantage

In addition to the gender pay and pension gaps, research suggests that there may be a similar issue when it comes to investing wealth for the future.

Research by Aviva (11 March 2024) has revealed that men are almost twice as likely to invest in Stocks and Shares ISAs, self-invested personal pensions (SIPPs), or General Investment Accounts (GIAs) as men.

Overall, 37% of women do not invest compared to 24% of men, and the reasons women gave for not investing included:

• Thinking the risk is too high (18%)
• Feeling that it is too complicated (10%)
• Not knowing how to get started (6%).

Unfortunately, this gender investment gap could mean that women are missing out on the potential long-term returns that investing could deliver.

In contrast, an understanding and supportive financial expert could help your female clients build the knowledge and confidence they need to create an investment strategy that helps them progress towards their goals.

3. Women may have specific financial protection needs

According to data released by Carers UK (8 March 2024), of the five million people providing unpaid care in England and Wales, 59% are female. Additionally, women are more likely to reduce their working hours to meet these caring responsibilities.

For women who rely on their partner – or someone else – to support their household financially, or for those who live on a reduced income, financial protection could be an essential consideration.

This might include making sure that the primary earner has sufficient income protection and life insurance to safeguard the family financially if they become unable to work due to illness or if they pass away unexpectedly. 

Equally, for divorced women and single mothers, putting a financial safety net in place could help them prepare for financial shocks and ensure that any dependents are provided for if something unexpected occurs.

A female financial expert can provide the bespoke advice your clients need

As a female financial expert who has years of experience empowering women to achieve their goals, I can provide the tailored services your female clients need, including:

• Planning for a single retirement
• Exploring pension sharing options during divorce
• Building their investing confidence
• Determining their financial protection needs
• Reviewing their overall wealth circumstances and creating a plan.

Get in touch 

If you have female clients who would benefit from the empathetic and tailored services I provide, I’d love to hear from you.

Please contact me at lottie@truefinancialdesign.co.uk or call 07824 554288.

I am also happy to discuss cases with solicitors first, before you refer your clients to me, or you can contact me by email and CC your client accordingly. I am happy to accommodate whatever mode of communication works best for you and your clients.

Please note 

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.