A question we often get asked is should Financial Planning be different for women? And the short answer is yes. Whether due to historical norms where men often controlled household finances, financial services companies were and still are dominated by men, or the majority of wealth sat with men in the past. Because of this Financial Planning and Advice is likely skewed towards a traditionally male focused approach. This could be the assumptions used, the products designed or even just the planning process itself. As a result, the standard approach taken by advisers can overlook critical factors that uniquely affect women’s financial well-being. From longer life expectancies and career interruptions to lower confidence in financial decision-making, women face distinct challenges that require tailored strategies and in some cases different products. Well things need to change, according to the Centre for Economic and Business research CEBR in the UK as much as 60 per cent of the nations wealth will be in women’s hands by 2025 so it’s time for the financial services industry to catch up.
This article will explore why financial planning for women should be different from the traditional approach, drawing on the latest research and expert insights to highlight the necessity for a gender-sensitive approach.
- The Gender Pay and Pension Gap: A Barrier to Financial Independence
This one won’t surprise anyone, as this is now well documented, publicised and is a fact. In a lot of cases Women get paid less for the same work as a male counterpart. The Financial Capability Strategy for the UK highlights that 62% of women have personal annual incomes of less than £17,500, compared to 42% of men. Additionally, only 35% of women are in full-time employment, compared to 54% of men.
Due to this, Women in the UK are significantly disadvantaged in terms of their retirement savings, given that income is the primary driver behind both savings, investments and personal and employer pension contributions. According to the Pensions and Lifetime Savings Association (PLSA), the median private pension savings for women aged 55 to 64 is £62,000, compared to £159,400 for men in the same age group. This difference is even more pronounced among individuals without private pensions, where the median savings for women is just £34,000, versus £175,900 for men. These figures underscore the urgent need for financial planning strategies that address the factors contributing to this gap, such as planning for career breaks, continued saving or pension contributions during periods of caregiving and how to plan to achieve your financial goals knowing that until the systemic issue is resolved you are statistically likely to have lower lifetime earnings then your male counterpart. And so, although we can’t yet solve the wider problem it raises the importance of long-term goals based planning as this can significantly and positively impact your outcome over the long term.
- A different approach to growth: Risk Aversion and Investment Behaviour
There are numerous different types of risk involved in investing and there won’t be enough time in this article to go through all of the different types. But the one that is most associated with “investment risk” is volatility – this is how much do you expect the value of an investment to go up and down over time. Research indicates that women (on average) tend to be more risk-averse than men when it comes to investing. Often looking for approaches and strategies that might forgo a level of growth for stability and a more assured outcome. A study by Schroders Personal Wealth found that 83% of women prefer lower-risk investments, compared to 57% of men. While this cautious approach can protect against short-term losses, it may also lead to missed opportunities for growth. A key point often overlooked is that the longer you invest, the less impact short-term fluctuations in investment value have on your overall outcome. Although we never want to unduly pressure anyone into investing into something they are uncomfortable with there is an opportunity for Financial Planners to educate their clients on balancing risk and return how this is impacted various factors (such as time invested, asset types etc) to build a robust investment portfolio. Most importantly, this should be done with your goals and objectives in mind, combining an element of your current attitude to risk, level of education and also most importantly an outline of what you would need to do to achieve the financial goals they have set out.
- Confidence Gaps in Financial Decision-Making: Bridging the gap
Although this is changing for the better over time, it is still having a big impact on the financial outcomes of Women. The Financial Conduct Authority’s Financial Lives survey reveals that women often feel less confident in managing their finances than men. This lack of confidence can deter women from engaging in financial planning and investment activities. And as outlined in the introduction, a lot of this is likely down to the marketing, media outlets, brands and approaches still being primarily focused on male clientele. This is why strategic partnerships like this one are so important as it allows for the creation of tailored educational content that can help bridge this confidence gap, empowering women to take control of their financial futures.
- The Rise of Female Financial Influencers: Know what to look out for
One of the areas that is helping to spread female focused financial content is the rise of social media and the emergence of female financial influencers. Why should this impact the way in which financial advice is provided to women? Because the vast majority of so called “FINfluencers” out there are not regulated financial advisers. As a result, much of the financial content women are now consuming is not regulated, leading to wide variation in its quality, accuracy, and suitability. As a rule of thumb, all financial advice and planning should be tailored to your individual circumstances. While the rise of online content is a positive step toward democratising access to financial education, it cannot replace personalised, professional financial planning. That said, this new wave of content is not without its benefits—it offers women relatable and accessible guidance, helping to build confidence and financial literacy. In turn, platforms like Instagram, YouTube, and even TikTok have created spaces where women can learn about budgeting, investing, pensions, and financial independence. These will continue to play a pivotal role in reshaping financial literacy for women. However, always check their credentials – if in doubt, check the list of registered individuals in the Financial Services Register | FCA. And of course, for all advice seek out a qualified financial adviser.
- Tailoring Financial Products to Women’s Needs
It may seem odd to think of financial products or services as gender-focused since, after all, a share in a company is a share in a company. However, many financial products fail to account for the unique financial journey women experience. For example, women typically live longer than men, creating a need for retirement plans that reflect longer life expectancies. They also often face factors like salary peaks, career interruptions, or specific ethical considerations. While financial planners do not create these products themselves, they play a crucial role in helping women navigate the wide array of options, highlighting newcomers that offer more gender-aware solutions.
One of the most successful of these is Ellevest a US-based investment platform that offers investment portfolios designed for women, considering factors like longer life expectancy and potential career breaks. They also provide financial planning tools, retirement planning, and investment options tailored to women’s financial goals. Although sadly not yet available in the UK we do expect the existing providers to begin building their propositions out in this space. Regardless of the product, as long as these differences are considered throughout the financial planning process, there should be no barrier to achieving positive outcomes for all women.
Conclusion
As we have seen above, the standard approach to financial planning does not adequately address the unique challenges faced by women. And so, by recognising and responding to these challenges, financial planners can develop strategies that empower women to achieve financial independence and security. This requires a commitment to understanding the specific needs of female clients and offering tailored advice that considers their life experiences and goals. With only 20% of regulated financial advisers in the UK being women, a lot of this needs to start with all advisers educating themselves on the differences and understanding how to incorporate this in their advice process. Here at Melville we are dedicated to making that a reality having successfully advised thousands of Women to positive outcomes, partnered with networks – like EGG – to help empower women in their own finances and through our hiring and development of female advisers, paraplanners and administrators. Although, as with lot’s of firms in the financial advice profession we still struggle to make this a reality and so there is undoubtedly more we can do to engage the next generation of Women to come into financial services.
What can be done to help
Financial planners and institutions must prioritise gender-sensitive approaches to financial planning. This includes offering products and services that cater to women’s unique needs, providing education to build financial confidence, and advocating for policies that promote gender equality in the financial sector. By doing so, we can ensure that women have the tools and support necessary to navigate their financial journeys successfully.
Disclaimer:
All the above information is provided as information only and any examples used are not indicative of financial advice to address your particular requirements. The information does not constitute any form of advice or recommendation by Melville Independent plc, and is not intended to be relied upon by readers in making any financial decisions. Melville Independent Plc is an Appointed Representative of JKFS (UK) Ltd which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate taxation advice.
By James Hassall-Marlow
July 2025
