We all know UK women will outlive men and inherit billions, so why would they come to your firm for advice?

New data from the Office for National Statistics population estimates show women are set to hold most of the UK’s investment wealth in the coming years. Which begs the question, who will they choose to advise them?  

The stats are clear – women are living longer, which means they are inheriting more.  

Even though there are roughly 105 boys born for every 100 girls, in the middle of 2024 there were 31.5 million women and 30.3 million men in England and Wales.

Until the age of 25, there were more men than women. By the age of 90 and over, there were almost twice as many women as men, as women simply outlive their male counterparts.

The trend indicates women are set to hold most of the UK’s investment and pensions wealth in the coming years, as they inherit from their (predominantly male) partners.

This makes the financial engagement balance even more dangerously out of kilter – men, all the research shows, are more likely to engage with investments and take advantage of the enormous growth potential they offer.  

HMRC figures show 57% of people who paid into stocks and shares ISAs in 2021/22 were men and Hargreaves Lansdown data shows the investment gap starts opening by the age of 19, when more men than women are already investing.

But as the population ages, this will have to change.  

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The figures show women are significantly likely to outlive their partner, so will eventually end up in the driving seat financially.  

“The question is whether couples are preparing sensibly for this or sticking their heads in the sand.”

By the age of 75 there are 13% more women, and by the age of 90, there are almost twice as many women.

Women not only live longer than men on average, they also tend to marry slightly older. It means that in a typical couple, the wife will outlive the husband.  

Assuming they pass the bulk of their wealth to their surviving spouse, it means women are set to hold the vast majority of the UK’s investment wealth.

Yet men are far more likely to have held the investments than a woman in the couple. Even when they hold them together, there’s the worry that one of the couple will take overall control. And if it’s the man, there’s a risk he will leave his wife high and dry when he passes away.  

“It demonstrates why it’s so essential that neither of the couple loses touch with any aspect of their finances, so they understand where their money is saved and invested, and why,” said Coles.

In an ideal world, couples should talk about investments as they go along, while they’re both in great health. They can help each other gain knowledge, understanding and familiarity with the world of investment. It means whoever is left behind completely understands what investments are held and why.

Financial advisers have a key role here, in including both partners in conversations around money – where wealth is invested and crucially why. The reasons may not be the right ones for the wife just because they were right for the husband, but understanding the rationale is important.

Advisers can act as trusted partners at a time when women are both emotionally vulnerable, having lost a loved one, and in need of financial support from the wealth that remains. Pre-empting those conversations while both husband and wife are still in the picture makes sense.

It’s also smart for business. Research consistently shows women ditch their husband’s financial adviser after he passes away. Building a relationship with both partners helps secure a lasting connection that will be invaluable to the bereaved, while keeping a long term client in the business.

With healthy life expectancy currently hovering in the early 60s, many people already face the prospect of leaving the workforce long before they can collect their state pension and that will leave a gap in their finances – so these conversations need to happen sooner rather than later.  

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