How YOU can help close the UK’s financial literacy gender gap

Right, so we already know the shockingly good value proper, expert financial advice can provide clients. But have you heard it could also help close the gap in financial knowledge between men and women?  

New research commissioned by Aberdeen suggests financial advice may play an important role in improving financial literacy among women.  

The situation is this – men are more likely to demonstrate very strong financial literacy overall but, and it’s a big but, the data shows access to professional financial advice significantly improves financial literacy scores for women.  

Among those using a financial adviser, 28% of women achieve a “very good” financial literacy score, broadly in line with the national average. However, just 15% of women without advice reach this level, highlighting the potential role advisers can play in building financial confidence, understanding, and better outcomes.

A similar pattern appears when looking at broader “net good” financial literacy scores. Six in ten women who use an adviser achieve a good level of financial literacy, compared with 48% of women who do not use advice.

By contrast, advice appears to have less impact on men’s scores, with 69% of men using an adviser achieving a net good literacy score compared with 71% of those who do not.

While we can’t explain why there is such a gap, the findings suggest that while financial literacy gaps persist, access to guidance and professional advice could play a key role in helping women build the financial knowledge needed to make long-term decisions about saving, investing and retirement planning.

Verona Kenny, chief distribution officer at Aberdeen Adviser, said: “Women who have a financial adviser are far more likely to demonstrate strong financial literacy than those who do not, suggesting advice can act as an important bridge between people and the knowledge they need to make confident informed financial decisions.  

“As an industry we need to take these stats seriously and by seriously I mean do something about them.”

You’re already providing highly useful, peace-of-mind-giving financial advice to female clients. Could you get the wives and daughters or male clients more involved in the advice process? The data suggests every woman’s life you touch with financial advice the greater chances they have of succeeding financially.  

The opportunity to change lives is huge.  

And if you need an extra pair of hands to keep up with the compliance side of all this outreach and new client potential, well The Timebank is right here ready to help.

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