How can advisers close the financial confidence gap among women?

Recent insights from LV= reveal a powerful opportunity to support and uplift women during their financial journeys, as more than half of UK women express a desire for greater confidence in their retirement planning. 

The findings, uncovered in LV’s latest Wealth and Wellbeing research, highlight a clear gender divide in investment activity and financial confidence, but also point to a growing awareness and appetite among women to take control of their financial futures. More than half (52%) of UK women have never held an investment product, compared to only a third (34%) of men, presenting a chance for financial advisers to engage and support women on their investment journey. 

Additionally, risk aversion remains a key consideration when it comes to investments, particularly among women aged 55 and over, with just under half (48%) of these respondents stating they would not consider investments involving financial risk. This contrasts with just over a quarter (27%) of men in the same age group, reinforcing the importance of understanding how specific clients feel about their investment journeys and risk appetite. 

With a significant portion of women citing concerns about financial risk as a barrier to investing, advisers could consider introducing lower-volatility solutions such as smoothed funds. Smoothed funds can help to cushion investments from volatile market conditions, offering a more stable investment journey and aligning with long-term goals while addressing risk sensitivity. 

Data from women members of LV’s online Member Community also identified the importance of communication with their financial adviser, highlighting a friendly approach, empathy, understanding and patience as important qualities. 

According to the Centre for Economics and Business Research, women are expected to hold 60% of the UK's wealth by the end of 2025. Therefore, advisers who tailor their approach to better reflect the needs and preferences of their women clients will be best positioned to build longer lasting relationships and thrive in an evolving market. 

Sarah Hills, wealth proposition director at LV=, said: “We know advisers play an important role in guiding people on their wealth and retirement journeys, and here at LV= we want to do all we can to help support all of their clients. 

“Our latest data shows women are reporting a confidence and knowledge gap, which advisers are well placed to bridge. 

“Women often live longer, have different life experiences and financial expectations. To build trust and relevance, it’s important that advisers feel confident to go beyond product recommendations and engage in conversations around life goals, values and the motivations behind their client’s financial decisions.

“By actively listening, using inclusive language and avoiding assumptions about risk appetite or financial literacy, advisers can strengthen their relationships and deliver more personalised, effective advice.

“In today’s evolving landscape, creating tailored investment strategies that reflect individual needs is not just beneficial – it’s essential.”