Three-quarters or 76 per cent of women are not concerned about gender when selecting a financial adviser, according to Schroders.
The study which included a sample of 200 women, finds that when contemplating how to address this challenge, many advisers consider increasing the gender diversity of their businesses despite only 12 per cent indicating a preference for a female adviser. But, an increase in gender diversity may be difficult to achieve given that only 16 per cent of advisers are female.
However, only 34% of those surveyed stated that they would stick with the same advisor following a divorce or the death of their partner.
According to the report, advisers should prioritise better understanding women, proactive communication, and active listening in order to keep them. The retention issue could potentially be worsened by the fact that, according to only 35% of female respondents, their adviser fully acknowledged and valued their varied financial requirements.
When choosing an adviser, the top three factors were found to be receiving value for money (48 per cent), trust (74 per cent) and experience (68 per cent).
Furthermore, 74 per cent of the women who responded to the study said they felt they were on course to meet their long-term objectives, while just 27 per cent said their partner and their aspirations were completely aligned and around 40 per cent had not shared their objectives with their consultant at the time.
Benchmark commercial director Gillian Hepburn says: “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.”
Ad Lucem CEO Phillip Wickenden says: “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 per cent 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.”
