The world of investing is changing, and that change is likely to bring a dramatic shift in the amount of wealth held by women in the UK. It has widely been predicted that by 2025, 60% of the UK’s wealth will be in female hands.
This is can be attributed to demographic and societal change. Women tend to live longer and are generally the first inheritors of the marital wealth. Also, with rising divorce rates, more women are receiving a share of their ex-spouses’ pensions and investments as part of the financial separation. A study has shown that 80% of women will be solely responsible for their finances at some point in their lives.
This shift means women are becoming increasingly more financially savvy and involved in their own and their family’s finances. But it also raises some concerns, especially when viewed against other statistics that show an apparent lack of financial advice being sought by women. According to recent research, only 39% of women with £250,000 or more of assets sought financial advice in the past year. This leaves a majority of 61% that are not seeking professional guidance – potentially missing out on using their valuable allowances and reliefs and therefore not maximising their financial situation.
So how can women ensure that they are making the most of their financial future?
As with most investments, the earlier you start, the greater the opportunity to take advantage of investment strategies and women who engage with their finances at a younger age have the prospect of growing their wealth over a longer timeframe. However, it is never too late to engage with your finances.
As a starting point, there are a growing number of online resources which offer advice on topics such as budgeting, debt management, and retirement planning. By taking advantage of these resources, women can gain a better understanding of the financial planning process.
In an ideal world, women would also seek the professional advice of a Chartered Financial Adviser. Financial advisers can help women understand their financial goals, create a financial plan, and identify the most suitable investment options for their individual circumstances. Seeking out a financial adviser that you can build rapport and trust with is important. A good place to start is by checking for a Chartered Financial Adviser in the local area and the government’s Money Helper website allows you to search and connect with advisers.
Inevitably, some women may prefer to deal with a female financial adviser. This may be because they feel a female adviser can understand the challenges they may face, or they simply feel they are able to be more open and honest. Thankfully, the world of financial advice has moved on over the past couple of decades, with a great number of highly skilled and qualified female advisers now in the profession.
Seemingly, the future transfer of wealth favours females, but that doesn’t mean that women should take a passive role in the process. By taking the time to understand their financial goals, create a plan, and find the right resources, women of all ages can ensure they are taking full advantage of the opportunity to build wealth in a sustainable way for their future use.
At Gresham, we understand the importance of helping women create a financial plan which is pertinent to them. We are committed to providing women with the advice and resources they need to make the most of their wealth across all stages of life.
Our team has an equal complement of male and female financial advisers, so hopefully you will find an adviser who you can work closely with.
If you are interested in learning more about how we can help you reach your financial goals, please contact us today.