Women are more likely to make changes to their financial planning following receiving financial advice, according to a new report.
While women are set to inherit more than half (56%) of transferred wealth globally by 2048, they are less likely to feel confident when it comes to money unless they receive professional advice, according to a new report from St James’s Place.
Just half (54%) of women said they would feel confident managing a financial windfall alone, compared with two thirds of men (66%). Even fewer women (44%) were likely to feel confident making changes to investments on their own, compared with 63% of men.
However, women receiving ongoing advice were significantly more likely to say they feel confident managing a substantial inheritance or financial windfall (82% vs 52%) and investing it (76% vs 41%) than women who do not receive advice.
The research also showed that women who currently receive ongoing financial advice are almost four times as likely to invest than those who do not receive advice (77% vs 22%) and more than twice as likely to have a financial plan in place (65% vs 30%).
Claire Trott, head of advice at St James’s Place, said the research demonstrates how women can benefit from financial advice.
She said: “Advice can help women build confidence, understand their options and take practical steps towards their long-term goals, whether that is investing, planning for retirement, managing an inheritance or passing wealth on.
“As women’s influence over wealth continues to grow, advice needs to reflect the realities that shape their financial lives, from career breaks and caring responsibilities to changing family circumstances. Helping women connect financial planning and investing to the life they want to build will be key to increasing long-term engagement and improving financial outcomes over time.”
The research also showed that the confidence tallied with outcomes.
Women who invest were more than twice as likely to describe themselves as financially comfortable than women who do not invest (53% vs 23%) and were also more likely to say they’re financially resilient (75%) versus 48% among those who don’t invest.
Similar trends existed among those with a financial plan in place. More than four in ten (45%) women with a financial plan said they feel financially comfortable, compared with 25% of women without a plan in place, while almost three quarters (72%) of those with a plan said they feel financially resilient against less than half (47%) of women without a plan.
Opinium surveyed 6,000 UK adults between 17 March and 9 April on behalf of SJP.