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Women are unlocking the power of advice

As you know, the team here at CL4Women are continually striving to promote a female centric culture of investing, now more than ever.  The value of advice is clear, as we have seen tangible benefits both from a financial and mental wellbeing perspective with our existing clients.

Helen told us ‘I am self employed and so it was really beneficial to speak to an adviser on how I manage my money better and prepare for life events like the pandemic, through savings and investments.  You never expect anything like this to happen but when it does it makes you reassess and consider the future of your finances more closely’.

From our experience, when women truly engage with financial planning and build a relationship with an adviser, they do so wholeheartedly.  Women tend to be more collaborative in the decision making process and are keen to work with an adviser and their household to establish good working practices.  Women need to be encouraged to take an active role in conversations, and want to feel empowered.   And yet, there are still too many ‘gaps’ when it comes to the finances of men and women. 

Women are paid less, are more likely to take time off to care for children or elderly relatives and are less likely to invest their money in growth assets and therefore end up with less to live on in retirement.

‘Women in their 60s will on average have £100,000 less saved into their pension compared to men’.

So why do women not unlock the power of advice; lack of time, confidence or industry jargon are some of the obstacles preventing women from investing.

The good news is we are exploring the role that technology can play in overcoming these barriers and use simple clear language on our website.

‘Women tend to view money as a tool to be used rather than an asset just to be accumulated.  Men like to see the number get bigger.  Women see the potential benefits of using the money.’

It’s a good idea to involve your partner, making matters open and clear so that assets are distributed equally, so if the relationship ended tomorrow both parties remain financially stable.

Having a life long relationship with our clients that passes on to their children helps the whole family familiarise themselves with the concept of financial advice to improve their overall wellbeing.  If someone in your family has money worries or is struggling financially it can put pressure on relationships.  Succession planning is an area we are keen to promote in the years ahead, to ensure wealth is passed down the generations of your family or to the right people in your life.  Estate planning and inheritance tax planning are a good way of supporting younger members of your family and brings you all closer together.

‘Over a third of women (38%) said they would prefer to work alongside professional adviser to help them make investment decisions, compared to 31% of men.’

‘Close to three quarters of women (72%) said they would recommend professional financial advise to a loved one.’

Finally, advice becomes even more vital in supporting clients through difficult times.  During times of divorce, bereavement or just stock market volatility brings client and adviser together to work through the options.  Ongoing advice is paramount to the success of the longer term plan to make sure you can meet your goals and aspirations.

The Financial Conduct Authority does not regulate Trust or taxation advice.