The market boasts a huge opportunity for advisers when it comes to helping women’s financial security, research from Advisersoftware.com has revealed.
The research, entitled ‘Building the Case for Digital Advice,’ found that the gender gap in savings and pensions continues to persist.
As of now, men have average savings and investments of £89,182 compared to £54,036 for women, showing a shortfall of 39%.
In pensions, the gap is wider, with men holding average pension pots of £133,710, while women average £68,677, a gap of 45%.
This leaves women 55% less prepared for financial security in later life.
Men are also more likely to seek financial advice, with 16% managing their savings with a financial adviser compared to 11% of women.
However, there is a demand from women for financial advice, with 36% of unadvised women expressing an interest in working with an adviser.
The research revealed that how women want to receive financial advice mirrors male preferences: 23% would opt for in-person meetings, 23% engage digitally, and 13% prefer phone consultations.
Ian McKenna, founder of FTRC and Advisersoftware.com, said: “Financial advisers have a huge opportunity to help women take control of their financial future – and a responsibility to combat financial vulnerability among women.
“The data makes it clear, women are at greater risk of financial insecurity due to lower savings and pensions, yet they are less likely to seek advice.
“However, those who are currently unadvised show a strong appetite to engage with a professional adviser.”
McKenna added: “Our report highlights there is already significant demand for Digital Financial Advice with as many women choosing digital as their preferred method of accessing advice as would choose in person advice.
“Digital advice can be delivered at far lower cost creating the opportunity to bridge this gap can make a real difference in improving women’s financial resilience and security particularly around long-term savings and pension planning.”
He said: “With financial wellbeing a critical factor in overall quality of life, this International Women’s Day serves as a call to action for the financial services industry to ‘accelerate progress’ by empowering women through tailored financial guidance and combat their financial vulnerability.”
