Gender gap in advice poses risk to $3.5tn wealth transfer

Wilsons Advisory’s Generational Blueprint report has found that men (81 per cent) are more likely to engage a professional adviser than women (69 per cent). In a similar vein, men (87 per cent) tend to feel more confident in their wealth plans compared with their female counterparts (79 per cent).

Both findings, the firm suggested, could be a result of the lack of female advisers in the profession.

According to the latest Wealth Data analysis, the advice profession is still very male dominated, with women currently making up just 22 per cent – some 3,400 advisers – of the 15,364 currently registered advisers.

Although this is a significant improvement from the past when men accounted for 92 per cent of advisers who started before 1992. Comparatively, the post-January 2023 period saw women make up 29 per cent of commencing advisers, including provisional advisers.

One of the key reasons this gender disparity is an issue, Wilsons Advisory explained, is some women “may doubt that male professionals can appreciate and empathise with their financial circumstances and priorities”.

Namely, the report found male clients typically focus on returns, while women are more likely to seek control, understanding, and long-term financial security through education and structured advice.

What women want from advice also tends to differ with age as younger generations tend to be highly engaged in improving their financial literacy, prioritising education and empowerment while asking more in-depth questions about the management of their wealth.

On the other hand, older women have historically had very limited control over household finances in the past and find themselves thrust into the responsibility following a divorce or becoming a widow. These women, the report suggested, may be more hesitant and risk-averse, making the decision-making process slower and triggering the need for additional guidance.

“To bridge this gap, the industry must focus not only on increasing diversity among advisers but also fostering financial confidence in women through targeted education, inclusive conversations, and an advisory approach that prioritises understanding over assumptions,” the report said.

With so many women set to take control of significant amounts of wealth over the coming decades, Wilsons Advisory private wealth adviser, Hilary Troy, noted the importance of enhancing female representation in advice.

“More women are prioritising sustainable wealth and looking for advisers who align with their vision. Crucially, emphasis shouldn’t be placed on like-for-like, where all female advisers exclusively work with female clients. It’s more about increasing diversity within advisory teams and creating more inclusive financial conversations,” Troy said.

“Encouraging more women to pursue careers in the industry is not just about addressing demand – it’s about leveraging the strengths women bring to the profession.”