Financial advice for women typically includes guidance on how to stretch retirement savings over a longer period, manage healthcare costs, and consider the impact of inflation.
Financial literacy also plays a critical role in the type of advice men and women receive.
Research has shown that men are generally more confident in their financial knowledge, which can lead them to seek and receive advice on more complex financial products and strategies.
Women, on the other hand, may be less confident in their financial literacy, resulting in a preference for simpler, more straightforward, financial advice.
This difference in confidence can sometimes lead to a self-fulfilling cycle, where men receive more advanced financial guidance that enhances their wealth-building potential, while women receive more conservative advice that limits their financial growth.
It underscores the importance of improving financial literacy among women to ensure they have the knowledge and confidence to pursue more ambitious financial goals.
Protection advice
When it comes to the protection advice process specifically, gender differences can also play a significant part, particularly when it comes to recommending products like life insurance, critical illness cover, and income protection.
As outlined above, men and women often have different financial priorities and risk appetites, which can play a part in influencing their choices in protection products.
For instance, women, who are statistically more risk-averse on average, might prioritise long-term security through life insurance policies that provide for their family in case of premature death.
They may also place greater emphasis on income protection, as they are more likely to take career breaks for caregiving responsibilities, which can leave gaps in their earnings.
This type of coverage ensures a steady income during times of illness or injury, providing greater financial stability.
On the other hand, men, who may be more inclined to focus on short-term security, might prioritise critical illness cover, which provides a lump sum payment if diagnosed with a serious condition.
This can help address the immediate financial impact of illness, especially for those in higher-income roles.
Men may also seek life insurance policies that address estate planning and income replacement to ensure their family is financially secure if they pass away unexpectedly.
By understanding these gender-specific concerns, advisers can offer tailored protection solutions that align with each client’s unique financial needs and goals.
Tailored advice
Financial advisers play a significant role in shaping the financial futures of both men and women.
However, they must be aware of these gender-based differences to provide the most effective guidance.
Advisers should avoid making assumptions based on gender and instead focus on the individual’s unique circumstances, goals, and preferences.
