Why Wealth Management for Women Matters
There may be many ways in which women have not yet achieved equality with men, but when it comes to wealth creation, they appear to be headed in the right direction. Growing numbers of women are now taking on senior and executive roles in business. However, wealth management for women remains a minority interest; only 36% of women, according to research by the Centre for Economics and Business Research, work with financial advisors.
Poor financial prospects for women tend to reflect their lack of engagement with wealth management advisors:
- Women lag behind when it comes to pension provision. A recent Institute of Fiscal Studies report found that less women than men had private pension provision in place, and that those who do, are saving less for their retirement.
- There is less awareness amongst women of how much they will need to save for their retirement. Over half of women surveyed had no idea of the amounts involved.
- The World Economic Forum has found that debt is held disproportionately by women, who tend to be charged at a higher interest rate than men.
5 Financial Challenges Faced by Women
The Harpur Wealth Management team recognises that wealth management for women needs to be tailored in order to take into account the different life journeys they experience. We have identified 5 challenges which, for the most part, affect the financial lives of women more than men:
- Maternity Leave. Taking maternity leave can still prove disadvantageous to promotional and employment opportunities for women.
- Childcare Responsibilities. As we’ve seen during the pandemic, women still tend to carry the burden for childcare, and family care requirements. This may mean time away from work to care for family members.
- Gender Pay Gap. The median gender pay gap in 2023 is 9.4%. This is similar to the 2017 figure, which is when reporting on the pay gap began.
- Interrupted Career Path. Women are more likely than men to have a broken career trajectory which may reduce pension opportunities, or limit pay increases.
- Lack of Wealth Management Experience. Investment is a traditionally male dominated sector. This is now changing, but as a legacy many women have not experienced the same support for seeking out investment opportunities as their male counterparts.
How Wealth Management for Women Works
The majority of women are excellent financial managers but they are less likely to make long term financial plans than men. This may be because they come from families in which the men dealt with wealth creation, or they may not have had the opportunity to work with a wealth management company. We are keen to change that, and there are 3 areas in particular, we would like to see women benefit from:
1. Start Paying Into Your Pension Sooner
Statistics demonstrate that the pay gap is negligible until women are in their 30s. We would advise, therefore, that you start growing your pension early, and that you save as much as you can. If you’re already in your 30s, remember that even a small increase in savings will make a real difference in the long term.
If it seems too early to think about your pension, just as you’re starting your first proper job, remember that starting early means building in flexibility for your future.
2. Don’t Back Off From Investment
The Fidelity Study into women and investment finds that only a third of women feel confident enough to invest, and less than a quarter would consider themselves knowledgeable enough to select the investments that were right for them.
At Harpur Wealth we are happy to talk through a range of investment options with our clients. Women tend – according to the Fidelity Study – to be less risk averse than men, and this is something we can take into account in our discussions, if appropriate.
3. Get Financial Advice With Your Partner
If you are looking for wealth management advice as a couple, make sure that you attend meetings alongside your partner. That way, the complex financial decisions that you, as a woman, need to take into account when planning your career will be an important part of the conversation.
We prefer to discuss financial goals and planning with both partners if possible. To this end, we’ll find flexible ways to make the meeting easier for both the attend.
A Long-Term Professional Relationship
We are committed to increasing the provision of wealth management for women. At Harpur Wealth Management our goal is to provide trusted and knowledgeable advisors who will work with you, over the years, to safeguard your financial goals. A Harpur Wealth advisor will set up regular review meetings and can be available at any time when you require advice, or to talk through ideas or investment opportunities.
New to wealth management? Why not book a free consultation with one of our advisors today? Call us on 01234 924620, or contact us online for a prompt response.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
The value of your investment can go down as well as up and you may get back less than the amount invested.
‘The Financial Conduct Authority does not regulate taxation advice’