Traditionally men have been encouraged to take the lead in financial matters, while women may have prioritised other responsibilities such as caregiving.

The financial services industry has also historically been very male dominated. As a result, many women may perceive financial advice as being more geared towards men or may believe that their financial situation doesn’t warrant professional assistance.
This perception can deter them from seeking appropriate financial advice and the consequences of this can be significant, impacting on both a woman’s financial wellbeing and their ability to achieve financial security and independence.

Overcoming these preconceptions could help encourage more women to seek the financial guidance they need to achieve their goals.

Unique financial challenges

• The gender pay gap means that women, on average, earn less than men. These economic constrains limit a woman’s ability to invest and this can be compounded by career interruptions due to caregiving responsibilities and practical barriers such as lack of time or resources.

• Women tend to live longer than men. According to the latest national life tables released by the Office for National Statistics (ONS), life expectancy in the UK between 2018 to 2020 was 79.0 for males and 82.9 for females¹ . This means that women need financial plans that factor in longer life expectancy and potential healthcare costs in retirement.

• However, according to a 2022 Women and Retirement Report by Scottish Widows² the average man aged 65 to 74 has over £250,000 of pension assets, compared to less than £150,000 for women. The report estimates that the average woman would actually need £85,000 more in retirement savings than the average man for a comparable quality of life in retirement.

• Historically, women have been less likely to invest in the stock market than men, limiting their ability to grow their wealth and achieve their financial goals³.

• Many women will go through significant life transitions such as marriage, divorce, widowhood or starting a family. Without a sound financial plan in place they may find it difficult to navigate the financial implications of these transition and to make sound decisions for their future.

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Missed opportunities

A lack of financial planning may lead to:

• Inadequate retirement provision. As women typically have lower retirement savings, they may risk outliving their savings or not having enough for a comfortable retirement if they do not seek proper financial guidance.

• Increased financial vulnerability. Women may be more vulnerable to the financial shock of job loss, divorce, or unexpected expenses if they do not have suitable plans in place to help them weather these challenges.

• Limited wealth accumulation. Women who do not actively manage their finances may struggle to accumulate wealth and achieve long term financial goals such as homeownership, education for their children or starting a business.

• Lost investment growth potential. Without professional guidance, woman may miss out on investment opportunities that could help them to grow their wealth over time.

• Reduced financial independence. Without financial advice women may rely more heavily on others for financial support reducing their sense of independence and autonomy.

Overall the potential consequences of not seeking financial advice can impact women’s financial wellbeing and their ability to achieve financial security and independence.

Tailored financial advice

There are now more female Wealth Planners and Advisers in the industry, creating more inclusive and accessible advisory services.

Tailored financial advice, from both male and female advisers, is geared towards a woman’s unique needs, challenges, and aspirations, leading to improved knowledge, confidence, and ultimately greater empowerment.

This empowerment enables women to better take control of their finances, build wealth, and achieve financial security.



¹ 05/04/2022 | UK Life Expectancy 2023 | UK Population Data
² 10/2022 | 2022 Women and Retirement Report | scottishwidows.co.uk
³ 31/10/2022 | Women missing out on £599 billion in Gender Investment Gap | www.boringmoneybusiness.co.uk

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

The content was accurate at the time of writing. Whilst information is considered to be true and correct at the date of publication, changes in circumstances, regulation and legislation after the time of publication may impact on the accuracy of the article.

FP2024-202 - Last updated April 2024