Financial advisers have an opportunity to engage and support women on their financial journeys, as new research from LV= reveals a clear gender divide in investment activity and confidence.
The study, based on LV=’s latest Wealth and Wellbeing research, found that more than half (52%) of UK women have never held an investment product, a stark contrast to just a third (34%) of men.
The research also uncovered a “confidence and knowledge gap” among women, with over half (52%) expressing a desire for greater confidence in their retirement planning.
This is particularly prevalent among older women, with almost half (48%) of women aged 55 and over stating they would not consider investments involving financial risk, compared to just 27% of men in the same age group.
“Our latest data shows women are reporting a confidence and knowledge gap, which advisers are well placed to bridge,” said Sarah Hills, wealth proposition director at LV=.
The findings suggest advisers need to tailor their approach to better reflect the needs and preferences of their female clients.
The research highlights that conversations with female members of LV=’s online Member Community identified empathy, understanding, patience and a friendly approach as important qualities in a financial adviser.
The report also suggests that to address risk sensitivity, advisers could consider lower-volatility solutions such as smoothed funds.
These can help to cushion investments from volatile market conditions, offering a more stable investment journey.
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Hills added: “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.”
She stressed the importance of actively listening, using inclusive language and avoiding assumptions about risk appetite or financial literacy to strengthen relationships and deliver more personalised, effective advice.
The research comes as the Centre for Economics and Business Research forecasts that women are expected to hold 60% of the UK’s wealth by the end of 2025.
“In today’s evolving landscape, creating tailored investment strategies that reflect individual needs is not just beneficial – it’s essential,” Hills concluded.
