Article by Christina
Female financial advisers are increasingly in demand with women in control of the family finances and investments in almost 60% of households. That’s according to the latest research from M&G which also found that:
- 92% of women wanted to be advised by someone who understood their needs. Like another woman.
- 87% wanted to feel confident about their investment decisions.
- 92% wanted a female financial adviser who also offered value for money in terms of their financial advice fees.
- 76% wanted to save time by using an advisor.
- 30% of couples said that they had joint finances, but 20% said they dealt with their own money and 50% had both joint and personal finances.
- Unbiased research found that 25% of women who get advice are divorced and 6% are widowed.
It’s estimated that 60% of the wealth in the UK is in the hands of women and this percentage is expected to rise. This is being called “The Great Wealth transfer” in some quarters.
Financial Advisors in demand.
The number of financial advisors in the UK has been falling steadily for years and the number of female financial advisers is tiny. Leaving an estimated 16 million mass affluent people in the UK without an adviser. This is savers with between £100,000 and £250,000 to invest.
Only 9% of people have a financial advisor and this hasn’t changed for the last few years. According to Lang Cat the average advised individual is 59 years old and has an average of £411,000 invested (including pensions). 70% of advice firms said that they had minimum investment criteria for new clients. Happily, we don’t.
Only 30% of advisers said that they offered one off transactional service. We only offer this kind of service to people who have previously been clients but no longer need our ongoing advice service.
But as we’ve reported before some of the major banks are coming back into the advice market. HSBC for example have just announced that they are cutting their fees to what they describe as the “mass affluent” market to 1%. Down from 2.75% previously. That makes their charges much more affordable. It is still restricted advice tied to their investments, but that’s better than no advice at all in many ways.
35% of people said they didn’t use an adviser because they thought they were too expensive.
Inheritance Tax Trusts on the rise.
The demand for financial advisors including female financial advisers is not just rising because there are less advisors. It’s also rising because of increasing demand for specialist advice to manage inheritance tax liabilities. This is on the back of the governments tax raids on inheritance and pensions.
According to Lang Cat, Quilter and AJ Bell:
- The number of trusts has doubled over the last 12 months.
- 80% of advisers say they’ve been approached about trust planning advice.
- 70% of advisers said that they had recommended more annuities than last year, with annuity sales up by over 30%
- 30% of advisers are increasing the use of offshore bonds.
Of course you can contact Christina if you’d like advice about inheritance tax planning.
Too many workers retiring early.
It’s not only financial advisors who are in demand, so are workers. Standard Life estimates that early retirement along with ill health is having a major impact on the economy and the government’s ability to hit their growth targets. Over 50’s account for over a third of workers in key growth areas like technology, professional services, defence and advanced manufacturing. Older more experienced workers are key in these sectors which require high skill levels.
Get more information.
For more information about the services available from your local female financial adviser, why not contact Christina today. We offer a free initial meeting to discuss your requirements and explain how our service works. You are under no obligation to use us after that if you don’t want to and we won’t pester you.
So why not call us today on 01282 614444 or e mail us enquiries@ccfps.co.uk or use our contact form online.
