Some of the findings from a recent report on financial wellbeing.
It is safe to say that after such a turbulent year, financial wellbeing became a hot topic. Both men and woman have similar financial wellbeing goals however, a study conducted by Saunderson House, a wealth management firm in London show that women feel they are less likely to achieve them, with only 37% of women feel happy with the state of their finances and only 30% have clarity and confidence over their future financial plans, compared with 72% and 69% of men respectively. Why is that? Here we will dive into some of the findings from this recent report on Financial Wellbeing:
Women Invest less than men
Although more women are starting to invest, there is still a big gap between male and female investors. So, why don’t more women currently invest?
There is a gap in knowledge. Understanding all the ins and outs of investments can be complex, and it is not a part of our education curriculum. There is also the fact that most investment companies tend to be geared towards men. So, the lack of female-focused investment opportunities can be off-putting.
It has become apparent to experts, that women could benefit from, not only seeking help from a financial adviser, but finding one they feel works in a very proactive manner. One that would communicate often and have open, detailed discussions about their financial situation.
Starting financial planning can also enable women to feel more empowered and capable of achieving their financial wellbeing goals.
In general, women feel they have less time to care for their finances than men as they have other responsibilities. Even in today’s modern society, family demands and responsibilities, tend to fall to the woman, hence they’re less likely to have the time to keep their finances in check.
There is a chance that this may improve due to the changes the pandemic brought to the world of work. Most industries have adopted remote working, giving people more time to dedicate to themselves and other matters.
Lack of Engagement from Financial Advisers
Research revealed, women don’t currently feel engaged by financial advisers. The research suggested that on a scale of 1-10, when asked “How well does your financial adviser understand you financial goals and aspirations” the average rate for women was 6, whereas the average for men was 7.7. Furthermore, only 25% of women say they sought advice from their financial adviser with regards to their wealth during the pandemic compared with 64% of men.
Saunderson House commented “industry must ascertain whether this disconnect is either because financial advisers don’t fully understand the goals and needs of women, or that women have a misconception of advisers as unsuited to them.”
It is essential for the finance industry to understand the difference between men and women’s financial wellbeing to begin bridging the gap and provide women with the necessary tools to reach their goals.