Three-quarters (76%) of women are not concerned about the gender of their adviser when considering their finances, according to research published today by Schroders.
The study which included a sample of 200 women, aims to better understand the role of women amid ‘the great wealth transfer,’ – currently underway from the baby boomer generation. The role of women in this cannot be overlooked as they are typically the first recipients of family wealth before passing this down through the generations.
When contemplating how to address this challenge, many advisers consider increasing the gender diversity of their businesses. However, today’s research demonstrates that this is not the answer as only 12% indicated a preference for a female adviser. Furthermore, given that only 16% of advisers are female, a substantial increase in gender diversity would currently be difficult to achieve.
Strikingly, only 34% of those interviewed said they would continue to use the same adviser after their partner passed away or post-divorce. For financial advisers looking to maximise their business valuation as part of succession planning, this research provides actionable insights on how to attract and retain female clients.
The research indicated that the key areas advisers should focus on to retain women were understanding them better, adopting more proactive communication and listening more. This retention challenge may also be exacerbated by the fact that only 35% of females said that their adviser completely recognised and appreciated their differing financial needs.
When selecting an adviser, trust (74%), experience (68%) and receiving value for money (48%) were identified as the primary priorities.
However, 74% of the women surveyed felt on track to achieve their long-term goals, although only 27% reported complete alignment of their aspirations with their partner. Some 40% had not discussed their goals with their current adviser. These findings emphasise the importance of open communication among all parties involved in the financial planning process and creating an approach where all genders feel confident in their adviser and their ability to meet their individual requirements.
Gillian Hepburn, Commercial Director, Benchmark said:
“Lateral wealth transfer to widows particularly in the baby boomer generation is often ignored and this new research undertaken with Ad Lucem supports this point. The Schroders financial adviser survey indicates that only 5% of advisers have a proposition to retain and attract female clients, particularly those widowed or divorced. Whilst there are specific advice requirements for women, the key to a successful proposition starts with engagement.”
Phillip Wickenden, CEO, Ad Lucem said:
“Ad Lucem were delighted to collaborate with Schroders on this significant research, shedding light on the existing gap in how the financial advice sector currently serves women. With predictions that 60% of the UK's assets will be in female hands by 2025, it is crucial to identify the current challenges and take action to create a more positive experience for women, while helping advisers retain their clients. We eagerly anticipate the results of the next stage of our research, which will examine this issue from an adviser perspective. The findings are due to be released in early 2024.”
For further information, please contact:
Gus Chipungu, PR Manager
+44 20 76582106
Kirsty Preston, PR Executive
+44 20 7658 1961
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Founded in 1804, Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion and over 6,100 employees across 38 locations. The founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model of by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
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