3 important reasons why your female clients should seek financial advice when preparing for retirement

One of your business’ most valuable selling points is likely to be that your service is “bespoke” or “unique”. Whoever walks through your door, you can tailor your services to their specific needs.

Have you ever considered that you might need to approach your clients’ needs differently, depending on their gender?

The recent data surrounding women and their financial behaviours could be instrumental in helping you to better meet your female clients’ specific needs.

Unbiased reports that only 36% of women in the UK have sought help from a financial planner, compared to 46% of men. The same report states that 75% of women don’t know how much they need to save for a comfortable retirement, compared with only 52% of men.

These gaps in advice-seeking could hinder your female clients’ wealth opportunities and, as a result, inhibit your ability to help them achieve their goals.

Here are three important reasons why your female clients should work with a financial planner when preparing for retirement.

1. Women have fewer opportunities to save for retirement

A 2021 Just Group survey of over-55s determined that, while 32% of male participants said they had the financial foundation to retire early, only 16% of women could do the same.

The survey, published by Money Marketing, reveals that most women who retired early did so largely because of ill health or caring responsibilities.

Plus, a 2021 study by the Office for National Statistics (ONS), published by the BBC, claims that UK mothers “pay the price” for career breaks when they have children. More than 15% of British mums say they are economically inactive, compared with 1.9% of dads.

Another study, also published in the BBC report, estimates that the average woman in her 20s today will retire with £100,000 less in her pension than a man the same age.

One key factor that could contribute to this disparity is divorce. When assets are split during divorce settlements, the majority of women will opt to keep their family home, leaving their ex-spouse with a pension pot as their main asset.

While remaining in the family home can have emotional and material benefits in the short term, the long-term effects of this decision could mean that women in this situation retire with a much smaller pension pot.

When it comes to risk-taking, Unbiased reports that only 10% of women have a stocks and shares ISA, compared with 17% of men. This is yet another example of how women, on the whole, are capitalising less frequently on the wealth opportunities available to them, impeding their ability to save for retirement.

Although the gender pay gap has narrowed in the past 20 years, the data remains clear: generally, women are not saving towards retirement as efficiently as men.

By encouraging the women you work with to seek guidance from a financial planner, you could put them in a better position to grow their wealth, and benefit more from the services you provide, too.

2. Women live longer than men, meaning their money needs to go further

The ONS has published research estimating that the life expectancy of a woman born in 2020 is almost four years longer than that of her male peers.

According to research published by Wealth Adviser, the average annual retirement income of a person stopping work today will be around £21,600.

So, a woman who lives to her life expectancy would need approximately £86,400 more than a man who does the same, in order to live comfortably in retirement. While these are just estimated figures, the likelihood is that your female clients will need to make their pension pot last longer.

A Prosser Knowles financial planner could help your female clients put an investment strategy in place that factors in their longer life expectancy. The earlier women begin to strategically save for retirement, the better – so it may be helpful to recommend financial planning to your female clients sooner rather than later.

3. Working with a financial planner can help your female clients to enjoy their desired lifestyle in retirement

A financial planner can help your clients maximise their wealth opportunities and minimise stress, helping to place them back in the drivers’ seat.

Here are just a few of the benefits they could see from working with a financial planner.

The confidence to invest, save and diversify

Sometimes, financial matters can be emotional rather than material. The women you work with might have the means to pursue saving, investment and diversification opportunities, but may have never felt empowered to seek financial guidance.

Words of encouragement towards seeing a financial planner could put them on a more confident path.

A review of their current pension pots, savings, and assets

A financial planner could provide expert guidance on how to maximise returns from a client’s existing savings. A comprehensive review of everything your client has already saved can help them work towards their goals more efficiently.

An investment strategy

Once a financial planner has worked with your client in reviewing their current financial circumstances, they can help create an investment strategy that she feels comfortable with.

A realistic, sustainable retirement plan

Having the expertise of a financial planner by her side could make all the difference to your client’s retirement plans.

She might feel better equipped to save and invest her money with confidence, as well as knowing she has a firm strategy in place for when and how she would like to retire.

Peace of mind

Ultimately, your female clients may benefit from peace of mind if they take this step.

Working with one of our financial planners is a stepping stone towards achieving their dream life, helping them to benefit more freely from your services and from the wide range of wealth opportunities they can access with professional help.

Get in touch

If you want to learn more about how we can assist your female clients, don’t hesitate to get in touch.

We’re here to advise you and your clients on all aspects of financial planning. If you have clients that would benefit from advice, or you’re interested in how you can work more closely with us, please get in touch. Email enquiries@prosserknowles.co.uk or call 01562 829 222.

Please note

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.