Why now is the right time for women inheriting wealth to consider financial planning

A shift is coming in terms of wealth ownership, as the years ahead are likely to see an increasing number of women with inherited wealth.

The “Great Wealth Transfer” is predicted to pass more wealth than ever before between the generations. According to Standard Life, in the UK, more than £5 trillion worth of assets is expected to change hands over the coming 30 years. Most of this will be handed down from baby boomers (aged 60 – 80) and the silent generation (aged over 80).

And Money Marketing reports that women are forecast to own 60% of the UK’s wealth by the end of 2025, driven largely by these inheritances.

However, this change in fortunes is not reflected in the demographics of those seeking financial advice, with women statistically less likely than men to speak to a professional.

This makes now an excellent time for women inheriting wealth to talk to a financial planner, helping to manage your investments, savings, and spending in a way which aligns with your life goals.

Professional financial advice and planning are the cornerstones of wealth management, but fewer women than men engage with the process

While research has shown that women will likely hold the majority of wealth in the wake of the Great Wealth Transfer, data also shows that they are less likely to be engaged with financial advice.

A survey by financial platform Unbiased discovered that just 31% of female respondents had previously engaged with financial advice, compared with 36% of men.

The platform also found that women were less likely than men to have long-term assets, establishing that, among female advice seekers:

• • 63% have pensions and savings, compared to 70% of men
  • 15% hold traditional investments, compared to 19% of men
  • 9% have rental property as a source of income, compared to 12% of men.

A financial planner can look at whether these assets might benefit you, if you want some of your wealth to generate income.

Regular reviews are vital, to help your financial plan keep pace with policy changes and global events

However, even with those who had previously engaged with a financial adviser, the majority of these had done so over two years ago. Think about everything that’s happened in the UK over the past two years, and this will put into context why regular reviews are important.

Not only has there been a change of government, but we’ve seen policy changes for pensions, significant market volatility due to US trade tariffs, and high inflation leading to a cost of living crisis.

All challenges to both the domestic economy and your personal finances. So, if you had previously engaged with an adviser or planner, you’ll see why now could be a sensible time to do so again.

Developing a bespoke financial plan can help to manage your wealth at every life stage

As a result of the Great Wealth Transfer, Money Marketing states that women are 45% more likely than men to have inherited assets. If this is you, it’s crucial to take independent advice on managing this wealth, giving you greater control over your finances, and developing a long-term wealth plan with your goals at the centre.

A financial planner will work with you to understand what these goals are, from your working life through to retirement and later life. They’ll also talk to you about your approach to risk, so your wealth is invested in line with your need, capacity, and tolerance for volatility.

Developing a bespoke financial plan means you can manage your wealth throughout your life, and regular reviews help to ensure that plan keeps up with your changing personal or professional circumstances, as well as policy changes.

Essentially, it’s an effective way to make sure your wealth is working hard, delivering returns, and giving you the opportunity to enjoy the life and lifestyle you’ve planned for.

Seeking advice can feel daunting, but a financial planner will offer you support and reassurance

Historically, certain factors have either put women off or prevented them from seeking their own financial advice.

New research from Capital Group in the US has uncovered some of these key barriers:

• • 26% of women feel they lack sufficient funds to work with a financial adviser.
  • 1 in 3 find their financial situations complex and stressful.
  • Women are less likely to seek financial help after major life events.

Working with a professional can ease some of these pains, lifting the stress and helping to reassure you about your financial circumstances. Plus, developing a long-term relationship with an adviser or planner means they get to know you personally, making recommendations that are specific to your life.

Get in touch

Our experience has shown that more women are taking an active interest in finances. However, we still regularly deal with situations such as divorce planning or after the death of a spouse and find women who haven’t previously had an insight into a couple’s financial arrangements. This can bring additional stress to difficult life events and is why we encourage client meetings with all parties.

If you’ve never spoken to a financial planner before and are apprehensive, we’re here to guide you through, every step of the way. Or, if you already have a financial strategy but it needs updating or reviewing, we’re here to help.

You can email us at info@harperlees.co.uk or call 01277 350560 to find out more, and we’ll be very happy to support you.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.