New research from AdviserSoftware.com, entitled “Building the Case for Digital Advice,” has confirmed that the gender gap in savings and pensions remains a significant issue, with women continuing to lag behind men in building financial security.
Despite efforts within the financial sector to address the disparity, progress has been limited, with women having, on average, nearly half as much money set aside for their future compared to men.
As people recognise International Women’s Day, financial advisers are being urged to take more proactive steps to help women build financial resilience and long-term security. The research found that the average savings and investments for men stand at £89,182, while for women, the figure is significantly lower at £54,036, a shortfall of 39%. The gap is even wider when it comes to pension savings, with men’s pension pots averaging £133,710, while women’s stand at just £68,677 – a difference of 45%.
The study also highlights that men are more likely to seek financial advice, with 16% managing their savings with the support of a financial adviser, compared to just 11% of women. However, there is strong demand from women for professional guidance, with 36% of unadvised women expressing interest in working with a financial adviser in the future.
The research also found that women’s preferences for receiving financial advice align closely with those of men. 23% of women would opt for in-person meetings, the same percentage would prefer digital engagement, and 13% would choose to receive advice over the phone. This suggests that the challenge in reaching women is not accessibility, but rather the need for greater encouragement and support in engaging with financial services.
Ian McKenna, founder of FTRC and AdviserSoftware.com, said: “Financial advisers have a huge opportunity to help women take control of their financial future – and a responsibility to combat financial vulnerability among women.
“The data makes it clear that women are at greater risk of financial insecurity due to lower savings and pensions, yet they are less likely to seek advice. However, those who are currently unadvised show a strong appetite to engage with a professional adviser.
“Our report highlights that there is already significant demand for Digital Financial Advice, with as many women choosing digital as their preferred method of accessing advice as those who would choose in-person advice.
“Digital advice can be delivered at a far lower cost, creating the opportunity to bridge this gap and make a real difference in improving women’s financial resilience and security, particularly around long-term savings and pension planning.”
“With financial wellbeing being a critical factor in overall quality of life, this International Women’s Day serves as a call to action for the financial services industry to accelerate progress by empowering women through tailored financial guidance and combatting financial vulnerability.”
The research was conducted on behalf of AdviserSoftware.com by Opinium Research between 10th January and 28th January 2025, surveying a nationally representative sample of 4,000 UK adults.
