A survey of HNW women has found just 23% control their long-term financial decisions and women in the millennial segment were found less likely to take charge.

Swiss bank UBS surveyed 3,652 high-net-worth women in nine countries, including the US, and found the majority rely on their spouses for long-term planning decisions.

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That trend is not changing with the younger generation, with younger women more likely to rely on their spouse than their parents. The study found 56% of women age 20-34 deferring to their spouse, as opposed to 54% of women over 51 years of age.

The study found women acutely aware of their financial requirements, with retirement planning, long-term care and insurance cited as the key financial needs.

However, women were more active in short-term financial planning, with 85% found taking charge of day-to-day expenses. Seventy four percent of widows and divorcees said that they received negative financial surprises after taking charge.

The reasons cited by women for the behaviour include “my spouse never encouraged me” and “my spouse knows more”.

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However, some financial advisors might also be to blame. A study by Dr. Ylva Baeckstrom of King’s Business School found that financial advisors assume female high net worth investors have less control over their investments. 

Help for entrepreneurs is also needed according to Alison Rose, deputy CEO of NatWest. In a report released today by RBS (the holding company of Natwest) suggests support for female-led start-ups could boost the UK economy by £100 billion over the next ten years.

The Rose Review, commissioned by the Treasury, found that women receiving just 9pc of venture capital.

According to UBS, the traditional “divide and conquer” approach for financial management can be hazardous given women’s longer life expectancy and critical moments including divorce or death of their partner.

UBS Global Wealth Management head of strategic client segments Jane Schwartzberg said: “As women around the world live longer, the likelihood of becoming widowed or divorced increases. It’s critically important that women not only understand, but are engaged in key, long-term financial decisions.

“Couples must recognise that sharing responsibility across all money decisions actually yields a dramatically better and more sustainable outcome than each partner handling one aspect alone.”

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