Advisers must help women take control of their finances, as research shows they continue to lag men in savings, investments and pensions.
Women have 39% less savings and investments than men, leaving them at greater risk of financial insecurity, says AdviserSoftware.com.
According to its ‘Building the case for Digital Advice’ research, the average savings and investments for men stands at £89,182 compared to just £54,036 for women.
The gender gap is even wider in pension savings, with men having an average pension pot of £133,710 compared to £68,677 for women. The firm said on average, women have 55% less investment in their financial future, leaving them significantly more exposed to financial insecurity in later life.
The research also found men are more likely to seek financial advice, with 16% managing their savings with an adviser compared to only 11% of women. However, 36% of unadvised women expressed an interest in working with an adviser in the future.
Ian McKenna, founder of 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. 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.”
McKenna said digital advice can be delivered at far lower cost, creating the opportunity to bridge the gender gap and make a real difference in improving women’s financial resilience and security, particularly around long-term savings and pension planning.
“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,” he added.
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