For financial professionals only
“Tapping into the wealth of generation X and millennial women represents a market worth over £36 billion in the UK.[1]”
That is one of the headline messages coming out of Parmenion’s ‘Advise Her’ campaign, which launches today and showcases the UK business opportunity for Financial Professionals in tapping into broader markets.
In particular, the campaign champions the need for better advice for women, who are both influencers and owners of huge swathes of uninvested wealth in the UK.
“Our own data shows that there is an obvious gap between the money women have, and the money they are efficiently investing. In a world of long-term low interest rates, simply sitting on cash is not the best way to manage money,” comments Emma Thomas, Parmenion’s Chief Financial Officer.
“Despite having strong financial situations, there is a gulf in the number of women who are engaged with the topic of investing, compared to the number of men. In my experience, what money means to women is different to men, so the advice they are seeking on how best to manage money, is also different. Our campaign urges the finance industry to think about how they address this gap, in order to get their slice of this pie.”
Female wealth is expected to increase in the coming years, with women owning 60% by 2025[2]. In part, this is due to increased female longevity – the first topic addressed in Parmenion’s ‘Advise Her’ resources. This will highlight the importance of pension planning with the potential that a wife might outlive her husband by a number of years.
Emma added: “At every stage of money management, there is a clear imperative to better factor in women. Household financial decisions tend to be collaborative[3], so it doesn’t matter who is the ‘richer’ partner personally – you need to speak to both parties for that final sign-off.
“Add to that the fact that women, on average, outlive men, and the big picture is starting to become pretty obvious. For financial professionals looking to secure new business, this is a massive potential client pool. But advisers must start talking in a way that give women confidence that their wealth needs are being understood.”
The ‘Advise Her’ campaign, which kicks off on Valentine’s Day, will also address the need for more female representation in the financial services sector and working conditions that makes finance a more attractive industry to work in.
“There is a lot of criticism of the financial sector that it just pays lip service to supporting women,” Emma said.
“That is undoubtedly the case in some firms, but in part the challenge is creating inclusive policies that don’t just appeal to women but encourages and normalises best working practices for everyone. In that way, everybody – especially women – can feel confident in their decision to work part-time, or move their hours for childcare pick-ups, for example.
“The core of our new campaign is about promoting that inclusivity and diversity of thinking and approach to a financial advice business to support their commercial success and long-term growth.”
Parmenion’s ‘Advise Her’ campaign will run throughout 2020, with special activity planned to celebrate International Women’s Day [8th March], including kicking off a social conversation using the hashtag #AdviseHer.
New resources and insights will be published regularly on the website, to support Financial Professionals looking for information and support to drive diversity in their business.
[1] TGI / Kantar, Winning over Wealth, 2019
[2] WealthiHer, Understanding the Diversity of Women’s Wealth, 2019
[3] DWP, Attitudes to financial decision making, 2012
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.