With it being International Women’s Day this Sunday, we decided to revisit the very topical gender inequality issue, specifically looking at the gender advice gap.
Nevertheless, there is a generation of successful and wealthy women coming to the fore.
Many women now have the financial freedom to see their money go further with financial advice. Yet, as a financial planning firm, we see first hand the disparity between the number of men and women seeking financial advice. But why is this the case?
The gender gap – key statistics
- Income – The gender pay gap currently stands at 8.9%, according to the Office for National Statistics, declining by only 0.6% from 2012. And, despite the significance of this gap, it seems minuscule compared to the investment income gender gap of 57%, as reported in the Financial Times Adviser.
- Retirement – The same article also revealed that in 2017/18, there was a difference of £88 per week in retirement income between men and women, increasing from £43 just ten years ago. For more on the gender pensions gap – read here.
- Understanding – Good Money Week found that 58% of women don’t think that financial institutions understand them and their needs, and a third of women believe the finance industry tends to target men with information.
- Advice – The Financial Times Adviser identifies the industry, there’s an average gender split amongst advisers of 84% male to 16% female.
We are experiencing a self-perpetuating cycle, whereby women feel that the male-dominated advice industry fails to cater to their needs, which in turn prevents them from joining the profession in the first place.
The impact of a female investor
- A survey conducted by Good Money Week in 2018 found that 29% of women with investments care equally about making money and having a positive impact on the environment.
- 67.4% of women in the WealthiHer survey said that making a social impact was of high importance when investing.
- According to the WealthiHer report, 60% of the UK’s wealth will be controlled by women by 2025.
- The 2019 Kantar report, ‘Winning over Wealth’, found that if investment providers were able to engage more meaningfully with women, increasing their level of financial engagement, the returns could produce an additional £12.4bn from millennial women and £24.4bn from Generation X women.
How we’re addressing the gender advice gap
- Our clients are treated the same. Male, female, young or old, our process-driven planning does not differ depending on the demographic. Every plan is bespoke to each client and tailored to their specific needs and circumstances.
- Our Managing Director, Rebecca Aldridge, has created waves within the industry. To start, she noticed the changes that needed to be made and had the confidence to make them through building her own company.
- The Balance: Wealth Planning ethos holds diversity and inclusion at its core. Having built a supportive and progressive environment, Rebecca has attracted a great team who hold the same values and perpetuate these in the way they work.
- Our advisers know that their role first and foremost is to listen. They take the time to truly understand why our clients have come to see us and what they hope to gain, taking into consideration their needs and values.
- Our information is tailored towards anyone and everyone who wants to organise their wealth to secure their financial future. That’s why we’ve made our helpful guides and blog posts information-heavy but jargon-free.
- We are always completely transparent about what we do and how we work and aim to deliver our service in the simplest way possible.
- As a majority female firm, with 2 out of our 3 advisers being women, we are perfectly placed to cater to the needs of female clients, as well as the men.