New research from UK wealth manager St James’s Place finds that women are more likely to manage day-to-day money decisions than long-term financial planning – but advice can help close this gap.

According to research from St James's Place, women are more likely to lead on handling household spending and budgeting, whereas men are more likely to take the lead on investing – 53 per cent compared with 34 per cent respectively – and retirement planning, 48 per cent compared with 32 per cent.

Despite women holding an increasing proportion of both inherited and earned wealth, only half of women feel confident to manage a significant inheritance or windfall and 44 per cent feel confident with making changes to investments, the research shows.

Advice increases confidence: women receiving regular advice are significantly more confident at managing an inheritance or windfall than those without advice (82 per cent vs 52 per cent). They are also more confident making changes to investments (74 per cent vs 41 per cent) and adjusting pension contributions (68 per cent vs 43 per cent).

Women receiving advice are also almost four times as likely to invest as those without advice (77 per cent vs 22 per cent) and more than twice as likely to have a financial plan in place (65 per cent vs 30 per cent), the research reveals.

Women are often the money managers, but not always the financial planners of tomorrow, according to the research, which highlights the role advice can play in helping women feel more confident, resilient and in control of their financial futures.

SJP’s Women and Wealth report, which surveyed 6,000 individuals across the UK, finds that women are less likely than men to lead on decisions that shape long-term wealth, be it investment (34 per cent of women vs 53 per cent of men), retirement planning (32 per cent vs 48 per cent) or wills and estate planning (28 per cent vs 36 per cent).

In contrast, more than four fifths of women are involved in managing daily finances and are more likely than men to say that they lead on day-to-day spending decisions (45 per cent vs 33 per cent) and household budgeting (46 per cent vs 39 per cent).

“The gaps we can see aren’t driven by women lacking interest in money. In fact, women are highly involved in managing all aspects of daily finances. The challenge is that too few are managing longer-term financial decisions that shape their future wealth, from investing to estate planning to pension decisions,” Claire Trott, head of advice at St James’s Place said.

“This is where financial advice can make a real difference. As highlighted by our research, advice can help women build confidence, understand their options and take practical steps towards their long-term goals, whether that is investing, planning for retirement, managing an inheritance or passing wealth on,” she added.

“As women’s influence over wealth continues to grow, advice needs to reflect the realities that shape their financial lives, from career breaks and caring responsibilities to changing family circumstances,” Trott said. “Helping women connect financial planning and investing for the life they want to build will be key to increasing long-term engagement and improving financial outcomes over time.”