Why Wealth Management for Women is More Important Than Ever Before - Evolution Financial Planning

In 2022 women are wielding more financial influence than ever before. The number of businesses owned by women is also increasing. However there is still a gender imbalance when it comes to receiving funding and pay. Women around the world are still negatively affected by prejudice, a reduced access to education and a lack of opportunities to build networks. The result of these financial hurdles is that women are generally limited on the amount of GDP they can earn annually. If you want to counter this imbalance as a woman, wealth management should be a top priority for you.

Gender Inequalities and Wealth Management for Women in 2022

Unfortunately this gender imbalance is not going anywhere fast and this inequality affects women both as individuals and business owners. Funding can make a huge difference to the performance of a business. Unfortunately women in business have disproportionately less access to funding than men. Statistics show that companies who receive funding are likely to generate 30% more revenue growth than those who do not receive any. Additionally, businesses that are owned by women receive less than 3% of global VC funding and 86% of the companies that do receive funding do not have any women in positions of leadership or management.

Financial Planning and Wealth Management for Women

As women we can offset the negative effects of gender imbalances in business by developing exceptional wealth management skills. Improving your wealth management is a painstaking process but it is worth the effort and the time. If you aren’t sure where to start with your wealth management journey, why not get some advice from a financial planner. At Evolution Financial Planning we specialise in assisting women with all aspects of their personal finance. Whether you need help with your pension or you would like some help with investments, Evolution Financial Planning can provide advice that is specific to your personal financial situation.

When comparing people who save money, it was found that women are likely to only save on average 13.5% of their income, in comparison to the 16% that men tend to save. This may not seem like a large difference but it all adds up over the years. There can be an average of £100,000 difference in retirement savings between women and men. However, this is not all down to women saving less than men on average. It is also affected by women doing more part-time work rather than full-time and taking more career breaks.

As well as saving less, in heterosexual relationships, it is common for women to rely on the income of the male earner. This is not an ideal situation to be in as a woman for a number of reasons but especially if you end up going through a divorce, as pension assets are often neglected. Obviously no one gets married with the intention of getting divorced, but it’s best for both parties in a relationship to be organised financially, in order to prevent extra financial complications in the future. The median salaries for men and women are £31,400 and £20,500 respectively. Meaning that women would have to start saving on average £,1400 pound more per annum in order to close this gender savings gap.

The Missed Opportunities for Women in 2022

The unique financial obstacles facing women in today’s society are not only unfair but they cause a lot of potential to be wasted. For example, if there was an equal spread of participation between male and female entrepreneurs – an increase of 3-6% – the world economy would be able to increase by 2.5-5 trillion USD. It also means missed opportunities for women on an individual level. Women tend to live longer than men on average, meaning they will require more savings to live comfortably in their retirement. However the way society is currently set up means that more often than not women retire with less assets to their name than men. This is perhaps one of the clearest examples of why wealth management for women is more important than ever. You won’t stay young forever and if you want to be comfortable later on in life then it’s imperative that you put some money aside for your retirement. It will also give you peace of mind knowing that you have a plan for the future.

Reasons to be Optimistic when Managing your Wealth as a Woman

It is easy to get overwhelmed by the unfair disadvantages that women face in business compared to men, or the fact that women tend to need significantly more retirement savings than men. But there are reasons to be inspired and optimistic about the future of women’s finance. Since 2021, there have been more female leaders in positions of power than ever before. Also, according to Barclays, 60% of wealth in the UK is expected to be owned by women. This is in part due to an increase in female entrepreneurship, as well as adapting distribution trends and societal attitudes. So keep your head up and use this as motivation to sharpen your wealth management skills and become a stronger, more financially secure woman this year.

Get your Finances Organised Now

If you are reading this article, chances are you have a decent understanding of why wealth management is so important for women in 2022. So if you’ve been putting off the organising of your finances, let this be your call to action. The best time to start saving was yesterday, so do your best to start organising your finances as soon as possible. Get in touch now and our team will have your finances organised in no time.

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