EDITION 3 | NOVEMBER 2021
11 rent if they are unable to work due to accident , sickness , illness or injury . The first time they seek financial advice shouldn ’ t be when they are looking to take out their first mortgage .
We also use the term ‘ intergenerational advice ’ often in the wealth market , and it hasn ’ t really reached the protection industry yet , but what if we could encapsulate the whole family ’ s financial needs in a holistic way ? Education is key , from the top down .
What are the financial needs of younger women in particular ? What should advisers be considering in initial meetings with them ?
On the face of it , you may think that the needs of young women will be much the same as those of a young man , however , younger women do have a bigger need to look after their financial future as they will need to set themselves up correctly for all the life events that may come that might have a bigger impact than they would for men . Maternity leave , part-time working and even long-term care needs – as women typically live longer – to mention just a few . This can seem daunting at first , thinking about care homes before you even reach your 20s , but just getting customers to consider these things means they are armed with the information they need , before they need it .
Are there any particular ‘ soft skills ’ that matter more to female clients than male clients ?
We are starting to move away from the stereotype that men are the main breadwinners and women are more the care givers for a family , however , that mindset still remains for a lot of people . Advisers need to be sensitive to every customer that they
Advisers need to be sensitive to every customer that they work with and have a range of soft skills that they can utilise for male or female customers , old or young . work with and have a range of soft skills that they can utilise for male or female customers , old or young . The best thing they can do is understand that customer ’ s individual values , work out what they need and offer them the appropriate solutions .
What sort of differences are there between advising men and women ( i . e . pay and pension gaps )?
There are quite a few differences between advising men and women . Women may want to take maternity leave or they may want to share this with their partner . Women may also want to go part-time to have children , and this means that their savings may need to be higher than their male counterparts , to accommodate this change in circumstances .
Even giving up work completely means they will still need support if they are unable to take care of the family . Income protection for homemakers , for example , because someone will still need to do all the ‘ super hero ’ jobs like school runs , food shops and changing the beds . Being off long term could also lead to gaps in their pension provision , so care needs to be taken that they plug this accurately so there are no shortfalls when reaching retirement age . Women also , typically , live longer than men so long-term care needs to be considered for their later years .
How can technology help bridge the gap between traditional advice and the younger generation ?
We have already seen online tools where quote and apply services are offered , however , we need to take a step back and start targeting the younger generation before we get to that point . Social media is still a massive platform that hasn ’ t really been tapped into by the majority of financial services and , if we want to reach younger people , then we need to start communicating as they do . Facebook and TikTok are great places to share good news stories about our industry .
If a potential young customer can see that their peers are benefiting from their policies , and all the ancillary benefits that come with it , then they are not only more likely to buy in to the idea but see the value it offers them . This also generates more referrals for advisers , who can then start
If a potential young customer can see that their peers are benefiting from their policies , and all the ancillary benefits that come with it , then they are not only more likely to buy in to the idea but see the value it offers them .
to have conversations with their parents or even grandparents and this is where we really start to make headway on intergenerational holistic financial planning . We need to capture this audience , who will be key to developing the technology for financial planning in the future .
What additional protection needs might women have that their male counterparts do not ? What should advisers be aware of ?
Women need just as much protection , if not more . Regardless of family status , women are more likely to be off ill than their male counterparts as they tend to seek medical advice when they need it . Having income protection and critical illness cover for worst-case scenarios means that they can take the appropriate time off work to recover , and have additional financial support for things like hospital visits and home alterations if needed . Women with children may need to pay childcare , so having their protection policies in the background will give them peace of mind that money is one less thing to worry about whilst they deal with everything else . Women also statistically live longer , so having long-term care protection in place means that they won ’ t have to sell their home if they eventually need to be taken care of and the wealth they have accumulated will be passed to who they wish instead of being sold to pay for care .