Gender imbalance in advice hindering intergenerational wealth transfer

While Australia prepares for the $3.5 trillion intergenerational wealth transfer, a new report suggests ongoing gender imbalance in the advice profession could prove a challenge to this process.

The Generational Blueprint report from Wilsons Advisory 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 to 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.”

Industry reaction

In response to the report, two female financial advisers discussed with Money Management how they believed women could be helped in the intergenerational wealth transfer. They speculated a lack of confidence and financial education is why women are less likely to seek financial advice. 

"Many women prefer to delegate financial matters to their partners, not because they lack intelligence or capability, but because they lack confidence. Even when they possess similar financial knowledge to their male partners, they often doubt their own ability and underestimate their skills. Meanwhile, men tend to display more confidence and are more willing to take risks," said Natallia Smith, director at TruWealth. 

"It’s only when life throws a curveball, such as divorce, the loss of a partner, redundancy, or approaching retirement, that many women begin to actively seek advice." 

Nicola Beswick, founder of White Rabbit Advisory, said: "I hear from many women that they sometimes hesitate to seek advice from certain professionals due to previous experiences where they didn’t feel understood or heard. Unfortunately, these negative experiences are more common that we realise, and it makes women cautious or disengaged. Clarity in communication is the most important aspect of advice, regardless of industry, so it’s concerning."

Regarding the low gender balance in financial advice, both agreed the financial advice industry should reflect the broader population, especially as women are likely to benefit most from the intergenerational wealth transfer. 

Research last year by Future IM/Pact found in advisory teams within wealth management, women comprise just 25 per cent of roles and men account for 75 per cent in comparison. Just 19 per cent of advisers are women and 13 per cent of senior advisers are women, although there is strong female representation in the more junior role of senior associate at 49 per cent.

An improved gender balance could be achieved via better career pathways, flexible working options, female networking events and campaigns aimed to encouraging women joining the profession.

Smith said: "If the advice profession doesn’t reflect the clients it’s meant to serve, many of those women could miss out on the guidance they deserve. We need to do better. We must attract more women into the profession and support them to stay and thrive. 

"That means creating pathways, providing part-time and flexible work options, and offering mentoring and encouragement. And it means male leaders who still make up the majority of business owners and leadership teams understanding that promoting women isn’t just about fairness. It’s about meeting the needs of future clients."

Beswick added: "The demand for advice is high, and with a relatively small adviser population, many won’t have the support they need to make the right decisions. For example, someone might sell shares without realising it could trigger a large taxable gain. Without proper planning, avoidable mistakes like this can diminish family wealth without anyone realising until it’s too late. 

"We need to recognise that different strengths are needed for the future financial advice, and we need to celebrate that women can be that difference."