IFAs can help reach younger women by being mindful of their different protection and financial planning needs, an adviser has claimed.
FTAdviser In Focus caught up with SimplyBiz's new head of protection services, Emma Vaughan, who said although one might think the needs of young women are the same as those of young men, there is a "bigger need" to look after women's financial future.
She said it was vital that education starts much earlier, and not when the advice journey begins at the point of getting a mortgage.
Vaughan added it was essential that all young people know much earlier on (at school age) about the basics of financial planning.
FTAdviser: We assume young people rarely seek advice. Is this true? And if not, how can advisers go about reaching out to young people?
Emma Vaughan: In the vast majority of cases, young people don’t seek advice because they don’t know they need to start getting advice.
Although some good work has been done to start teaching the younger generations about their future financial needs, ultimately it is up to parents to start these lessons.
Many of us will have played ‘shop keeper’ as children, so there is a way to make it fun, as well as teaching lessons that will put us on the front foot as we grow up. Advisers can also support this by reaching out through new, more diverse channels such as social media.
An 18-year-old isn’t going to wake up on a Saturday morning and think they need income protection, but they will open Instagram and be influenced by their peers.
Advisers need to relate to young people, and this can be done with some of the amazing testimonials that insurers pull together.
The younger generation may not need the full suite of protection to cover mortgages and families, but they will understand that an income protection policy will cover things like their technology, nights out or even 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.
FTA: What are the financial needs of younger women in particular? What should advisers be considering in initial meetings with them?
EV: 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.