Why more women are seeking financial advice

With today’s cost of living concerns, including interest rates and rising rent, recent research reveals women are choosing to take more control of their finances.¹ As an adviser, providing tailored financial advice for women can help your clients’ reach financial independence.  

Understanding finances

When it comes to financial literacy around the world, 30% of women have low financial literacy compared to 21% of men. Conversely, only 11% of women have high financial literacy compared to 19% of men.² 

A study by BNY Investment Management, Pathway to inclusive investment,³ calculates that if women invested at the same rate as men, there could be more than US $3.22 trillion of additional capital to invest globally.

Two factors are standing in the way:

1. Women are earning less than men

In Australia, the gender pay gap between men and women is 21.7%.⁴ Even though equal pay was first introduced in Australia in 1969, women still earn less due to factors such as gender stereotypes, lower wages for female denominated industries, inflexible working conditions and ongoing gender discrimination.

2. Women are saving less than men

According to research by the Australian investment firm, Fidelity International, one in three women aren’t financially confident to make significant life decisions like changing jobs or changing their relationship status.⁵

Superannuation data also shows less than favourable results for women. According to the Association of Super Funds of Australia, women retire with 35 per cent less super than men.⁶

However, these obstacles are now being pushed aside as women’s wealth grows and a larger number of women seek to take control of their finances.⁷

The tables are turning

This trend is being driven by a growing number of female graduates, women in leadership and managerial positions, and the rise of consumer power in the hands of women.

According to the report, Nine mega trends leading the sheconomy,⁸ women are emerging as key decision-makers in purchasing most consumer durables, health and beauty items, groceries, cars, and houses.

Five key takeaways for advisers

As more women seek financial advice, advisers can tailor their service to help with:

1. Budgeting

If you want to help your client reach their financial goals, you’ll need to know how they’re spending, and this starts with going over credit card statements and bank accounts together. From here, you can determine where some potentially life-changing improvements can be made.

2. Financial goals

Where does your client see themselves in 5-10 years’ time? By understanding their goals in tandem with their financial situation, you can chart a realistic course for them to buy that dream house, take that special holiday, and/or build on her existing wealth.

3. Financial planning

After discussing financial goals with your client, you can introduce where savings can be made and how they can be leveraged.

4. Shared finances

Joint accounts and budgets can be a source of tension between couples, so discussing common dreams and goals can be a helpful starting point.

5. Retirement plans

If super levels are low due to taking time off work to care for children, or ill family members, a plan to top-up their super might be required. With a retirement plan in place, you can help your client reach their retirement goals.

Aware Super offers a broad range of expert services to help grow your advice business. Here’s how Aware Super can help your business with our dedicated Adviser Portal.

¹ UBS: Women and Investing: Reimagining wealth advice
² Allianz: Playing with a square ball: the financial literacy gender gap
³ BNY Investment Management: Pathway to inclusive investment
⁴ Workplace Gender Equality Agency: Gender pay gap data
⁵ Fidelity: Pathway to women’s financial independence
⁶ Association of Super Funds of Australia: The gender pay gap in Australia
⁷ UBS: Women and Investing: Reimagining wealth advice
⁸ Globe Newswire: Global Sheconomy Research Report 2022