Today is Financial Awareness Day – a chance to reflect on how we can all make better, more informed decisions about money.
We spoke to Lydia Dancey, one of our wonderful Business Development Consultants, about an issue that’s especially close to her heart. Here’s what she had to say…
For me, today’s a reminder of a time I watched someone close to me face a life-changing event, and with it, an unfamiliar and overwhelming financial situation. It was one of those moments that makes you see the financial services industry through a very human lens.
It made me realise how often we assume that important financial knowledge and decision-making is shared equally between partners. The reality is, too often, it isn’t.
Why the gap matters
Over the next 30 years, an estimated £7 trillion will be passed down in inheritance. Much of that will be inherited by women, because, on average, women have a longer lifespan than men. And yet, an estimated 70% of women change adviser after their spouse’s death. Why? Because often they haven’t had a close relationship with them.
We know women tend to live longer, need more in retirement, and still retire with significantly less wealth than men. They’re not less capable – in fact, Fidelity research shows women marginally outperform men on average when it comes to investing. The real gap is in confidence and in how financial advice is offered.
What it looks like in real life
When one partner is left to deal with financial decisions for the first time, it’s rarely just about numbers. It’s about:
- Grief, stress and emotional overwhelm.
- Feeling unprepared and lacking the language to engage with complex information.
- Struggling to make important choices without a trusted adviser relationship.
Even for someone confident and capable in other areas of life, this can be an incredibly isolating and disempowering experience.
The opportunity (and the responsibility)
By the end of 2025, 60% of UK wealth will be in women’s hands. This is one of the biggest shifts in economic power in history.
For advisers, that creates both a huge growth opportunity and a clear duty of care. Ignore the female advice gap, and you’re not only missing a chance to strengthen client relationships and grow your business – you could be exposing clients (and your firm) to foreseeable harm.
Representation plays a part too. Only 18% of financial advisers are women, according to the FCA’s records. In a market where more future wealth will be controlled by women, a male dominated industry risks making the industry feel out of step with its client base.
I believe the firms that address these issues now – that adapt their approach, broaden relationships, and make every client feel confident and included – will be the ones that keep pace with this historic transfer of wealth.
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity.
Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
