Schroders Financial Adviser Survey: Only 7% of financial advisers have a proposition for advising and retaining women

Schroders Financial Adviser Survey, the flagship annual study which aims to deliver a range of insights to support financial advisers with their planning, has found that, whilst nearly 80% of financial advisers believe that wealth transfer presents an opportunity to their business, only 7% have a proposition for advising and retaining women.

The Schroders survey also identified a significant increase in financial advisers who are concerned about succession planning [1].

The link between these points is important as 70% of women inheriting wealth change advisers within a year of their partner’s death. The resulting asset flows out of the business can therefore damage potential business valuations for advisers looking at potential exit strategies.

Gillian Hepburn, Head of Intermediary Solutions, Schroders, said:

”During the last few years as the challenge of wealth transfer has come to the fore, the focus has been on transfer of wealth to the next generation. However, for the baby boomer generation who are passing on wealth now, the first point of transfer is typically from a husband to a wife. If significant numbers of these widows are not using the same adviser then this could be a challenge for the industry.

“At Schroders, we were keen to understand the reasons why women tend to change adviser, and as such engaged Dr Eliza Filby, a historian of generations who has interviewed financial advisers, widows and women typically over 50 to understand their attitudes towards money, investment, inheritance and financial advice and how these differed from men.

”In addition to driving this discussion, we are also proud to be delivering not only investment solutions but also business solutions to help address many of these adviser challenges.”

Dr Eliza’s research, Taking the Reigns: Female Clients and Wealth Transfer looks to help financial advisers understand what influences women to change adviser and how this can be addressed.

 

Dr. Eliza Filby, author and expert on demographics and societal change, commented:

”I’ve been delighted to collaborate with Schroders on this crucial project shining a light on this misunderstood female demographic and what they require from the financial services industry.

“From speaking to a number of women and listening to their stories it’s clear that they all have a deep-rooted relationship with money and investment that is constantly evolving and they absolutely want to be involved in conversations regarding their family’s wealth.

“Women hold the key to unlocking the inheritance economy and it is time that they were put at the heart of it.”

 

[1] Concerns about succession planning have risen significantly, putting this into third place, from seventh the previous year (3% 2020 vs. 13% 2021).