There has been a seven per cent rise in female clients seeking financial advice over the past five years, mainly due to the death of a spouse or divorce.
Women are becoming increasingly important clients for the independent financial advisor as they take more control of their financial affairs. The client base, which has historically had a male bias, is now becoming more equally gender split; in addition, the financial market feels encouraged that more couples are taking joint control of their affairs, whereas in the past men tended to make all the financial decisions. Research shows that in 2012 it was estimated that only 23 per cent of joint clients involved both partners taking responsibility. This is now on the rise; by 2022, the figure is predicted to rise to 35 per cent.
This, however, is not the case with women becoming financial advisors. Just one in ten advisors are currently women, with half the industry having no female advisors at all. Firms are looking to encourage a greater number of women into the fold, hopefully to persuade and give financial advice to more female clients and provide greater gender diversity.
42 per cent of marriages end in divorce, with the average length of marriage just eight years. Divorce accounts for 51 per cent of new IFA female clients, the death of a spouse 31 per cent, and the growth of female entrepreneurs 19 per cent. With increasing equality for women in the workplace, they are taking more control and managing their finances.
Financial advisors are clued up on all the necessary information needed to give the best possible financial advice; for example, companies such Intellifo offer bespoke software for financial advisors. They have information on all aspects of finance, from savings and mortgages to life insurance, investments and ISAs, with the aforementioned software for financial advisors helping them to manage the process.
Regardless of your marital status, it is important to seek advice from an advisor and not miss out on opportunities to save and invest wisely. As you go through different stages of your life, it is critical to look after your financial health as you would your personal health. Ask for help and get educated – don’t leave anything to chance, as it may not work in your favour.