Nearly 3 million WARY women turn their backs on financial advice

 

  • Only 12% of women hold a stocks and shares ISA vs 19% of men
  • Almost a third of women in their 40s and 50s have chosen to not see a financial adviser again
  • Women state “Philip Green scenarios” as reason they don’t trust or engage with retirement savings through a pension
  • Boring Money warns consumers that price comparisons sites are not always the best pit stop for advice

 

A new report from Boring Money, the independent consumer website set up by Holly Mackay to help normal people make smart investment decisions quickly and painlessly, reveals that nearly 3 million1 ‘Wary Women’ are not engaged with the stock market and are increasingly turning their backs on traditional financial advice.

  • Just (11.8%) of women in their 40s and 50s hold a stocks and shares ISA compared to 18.9% of men in that age bracket2
  • 14% use a financial adviser but a significant 30% have chosen not to continue to see an adviser despite having done so in the past3
  • 35% of women say they use friends and family and 43% rely on comparison websites when it comes to financial decision making4

In addition to the lack of trust and engagement with financial advice, pensions are seen as a tainted brand by women in their 40s and 50s. The increase in cost of day to day living, the rise of  the State Pension age, concerns around the stability of wider economy and “Philip Green scenarios” were all cited as reasons by women not to trust or engage with retirement savings through a pension. However, women in these age brackets who are regular savers do admit to frequently dipping into savings to fund holidays, schooling costs and emergencies.

 

Holly Mackay, MD of Boring Money, comments, “These women are typically at the peak of their earning capacity and still have the time ahead of them to make a material difference to their long-term wealth. Yet at the very time when they should be taking the plunge into the stock market, they are turning away from it. When we think about this against the backdrop of increasing divorce rates, a rising State Pension age, a reduction in the availability of affordable financial advice and of course the ongoing gender pay gap, there has never been a more important time for the industry to strike up the conversation with its female customers.”

Mackay continued: “The business models of most comparison websites abuse the trust placed in them. It is clear why so many time poor women use comparison sites as their go to source of financial guidance, but few understand their pay-per click mentality.  We need to re-engage women with their finances and clearly demonstrate the financial benefits of investing in the stock market.”