The Shift in Wealth Management: Women Taking the Lead
Recent research by Unbiased indicates a noteworthy trend in how women are approaching financial advice amid the ongoing Great Wealth Transfer. This phenomenon is projected to see women controlling a significant portion of financial assets in the UK, with estimates suggesting they will own 60% of the country’s wealth by the end of 2025, according to the Centre for Economics and Business Research.
Independent Financial Guidance
The study highlights that a substantial number of women are opting to seek financial advice on their own. Specifically, 74% of women reported that they are pursuing guidance solely for their individual needs, compared to 65% of men. This indicates a growing trend among women to take charge of their financial futures.
Demographic Insights
The motivations behind this shift become apparent when examining the demographics of those seeking advice:
- Approximately 26% of women seeking financial counsel identify as single.
- In contrast, only 15% of men in the same category are seeking advice.
- Similarly, 12% of women report being divorced and looking for financial advice, compared to just 4% of men.
- Among widowed individuals seeking guidance, 6% are women, while the figure stands at 3% for men.
Sources of Wealth and Financial Assets
The assets that women are likely to manage are typically linked to significant life events. Unbiased’s findings indicate that female advice-seekers commonly expect to gain wealth from:
- 19% anticipating an inheritance.
- 12% from property sales.
- 2% related to divorce settlements.
In comparison, the percentages for men are notably lower, showcasing distinct differences in the sources of wealth between genders:
- 12% expecting an inheritance.
- 9% citing property sales.
- 1% listing divorce settlements.
Encouragement for Financial Empowerment
Karen Barrett, founder and CEO of Unbiased, emphasizes the importance of financial independence for women. She stated, “For many women, the Great Wealth Transfer marks the first time they’re managing wealth independently and making major financial decisions on their own terms.”
According to Barrett, this period represents a pivotal opportunity for women to not only preserve wealth but also to engage actively in wealth growth and investment planning for future generations. She advocates for women to collaborate with qualified financial advisers to build their financial confidence and make informed decisions.
The Advice Sector’s Role
Barrett calls on the financial advice industry to adapt to these changes. “The advice industry must keep pace — by listening, understanding and offering guidance that reflects the real lives and priorities of women today,” she asserted. This proactive approach aims to equip women to transform their financial landscape, turning financial independence into lasting influence.
