Could More Female Financial Advisers Help Narrow the Pension Gap?
Women face poverty as they retire despite living longer than men. Female financial planners could help change that.
Could more female financial advisers help narrow the pension gap? This is a question being posed by financial experts, who note that the industry's lack of diversity is contributing to the disparity between men and women's retirement savings. Currently, women make up just 18 percent of UK financial advisers, with a similar percentage in the U.S.
A study by HSBC UK in March revealed that women who work with financial planners are more likely to work with female advisers compared to male advisers. Rebecca Owers, Head of Wealth and Specialists at HSBC UK, says that many women prefer to work with a woman who can relate to their experiences. Women also tend to live longer than men, but they receive pensions that are about a quarter less.
This gap is largely due to factors such as career interruptions to care for children or elderly parents, and ageism that hinders women's career progression.
Addressing these inequalities requires more than just financial advice. Greater choice in advisers could encourage women to take control of their finances and tackle the pension pay gap. Jessica Craig, a financial adviser at Lanyon Financial Planning, believes that more female advisers would help educate women about financial planning and retirement.
She points out that career breaks, maternity leave, and caring responsibilities have a significant impact on women's financial security, leaving them with smaller pension pots by retirement.
The consequences of this gender pension gap are stark. Nearly 60 percent of retired Brits living in poverty are women, according to 2026 government statistics. In the U.S., women are far more likely to be in poverty as they age, with poverty rates for women over 65 being nearly 17 percent compared to about 14 percent for men. A woman's financial journey is vastly different from a man's, and there is a lack of education to help people build their future and financial security.
Craig argues that more female financial advisers can empathize with women's unique financial challenges and help address the gender pension gap.
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