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Queenagers: a term coined to describe women (queens) in their midlife. Educated, hardworking and financially solvent women between 45 and 60. They account for 8.5 million women in the UK and drive 93 per cent of household spending decisions (Noon). Queenagers are not a fleeting trend, but a significant and influential demographic.
Yet they’re often invisible to big brands, mass media and on social platforms. They’re underrepresented, underserved and underestimated. So much so, a buzzword has been created to help shine a little light on this generation.
At Hodge, we see that acknowledging this new growth area is not only a matter of social fairness but a commercial opportunity we can benefit from understanding.
Let’s dig a little deeper to understand who we’re talking about when we use the term ‘Queenagers’. They’re a pioneering generation of women in their mid-forties and fifties. Many of these women are well educated to degree level or above, interested in finance, politics and health. With decades of professional experience and wealth behind them, they’re still focused on enjoying life.
The natural shifts in lifetime milestones moving to later in life, such as becoming a mother, buying a first home and getting married have given women a more even footing on the career ladder, with more time dedicated to building on their chosen vocation, one reason why we’re seeing a higher representation of females in senior roles.
One third have no children and the other two thirds are still working now their children have grown. For those who have chosen to have children, today’s society is encompassing a more equal role when it comes to raising a family, with equal parental leave in inclusive organisations like Hodge, helping build a more equal society.
In real terms, it was only in the 1960s when women had the legal right to borrow money to buy a home, and due to lower earnings needed a male guarantor to do so. Growth in homeownership rates has become an important indicator of financial changes. According to Savills, 33 per cent of all mortgaged owner occupiers are women, but this is another number we can see increasing as women’s financial independence, particularly past the age of 45, increases.
Queenagers are more financially stable than ever. In fact, in the 2019 census, women over 40 out-earned women under 40 for the first time ever. But it’s often perceived, and far too often portrayed, that women are less educated than their male counterparts when it comes to all things finance. By this, I’m talking about all areas of wealth, from pension planning and mortgage products, right through to understanding the best savings and investment options.
Playing into this narrative, and despite improvements, men still dominate jobs in the financial industry both in terms of earnings and senior roles.
You could draw a similarity to the automotive industry in the UK. Most likely when you bring your car to a mechanic, they will be male (in fact, 80% of the automotive workforce are male - IMI). When you need to speak to an independent financial adviser about your wealth, you’re most likely to speak to a man (in 2022 the FCA reported that 84% of all financial advisors are male). The gender disparity in these roles reinforces the incorrect assumption that all men know more about cars and money than all women. Whereas in reality, would you trust someone who is not a mechanic to fix your gearbox, woman or man? No. And that’s because anyone who is not a mechanic, regardless of gender, does not have any monopoly on car knowledge over the other.
And it’s the same when it comes to finance.
What most people know about managing their money and being financially confident is not dictated by age or gender. In fact, a recent study by Hodge found 79% of women are confident when it comes to managing their finances compared to 83% of men. Not much of a gap. So how can you help support the Queenager?
Women have made tremendous strides in closing both the income and the education gaps between them and men. Women achieve better qualifications at GCSE and A-Level and more women go to university than men (319k vs 245k respectively – ONS, 2022).
Through better qualifications, more equal pay and therefore pension contributions, higher levels of home ownership and longer life expectancy, women are set to own 60% of Britain’s wealth in 2025, growing from 48% in 2005 (Hargreaves Lansdown). This will give women more financial power than ever before, yet we’re still seeing less women than men taking financial control when it comes to seeking financial advice, investing their money and paying into pensions.
Now, reaching a new stage in their life, they could be looking for new ways to use the equity they’ve built in their property to continue living the life they’ve worked hard for, fund their children’s education or gift money for a wedding or house deposit. This is where those within the financial services industry can help support women. As the tide turns, we’ll see Queenagers riding the first wave.
It’s a classic chicken-and-egg scenario: women are disregarded more by media, advertising, and advisors, so they feel they don’t have as much of a voice, even though they are the ones holding the purse strings. Together, we need to bring them back into the fold by encouraging a more inclusive and equal playing field, particularly within financial services. By recognising and adapting to market shifts, we can better serve this influential and growing market.
At Hodge, we’re always looking at ways we can enhance our criteria to better serve the underserved, such as:
As Queenagers become a more prominent demographic and there is less of a gender income disparity, Retirement Interest-Only (RIO) mortgages are likely to become more viable, particularly for joint borrowers.
The current income gap, where men tend to earn a higher salary then women have an impact on affordability assessments for joint mortgage applications. A key aspect of RIO mortgages is the first death stress test, applied to ensure the mortgage remains affordable for the surviving partner if one partner passes away. For joint applications, lenders evaluate the lowest income of the two applicants, factoring in any transferable income and benefits such as pensions from the deceased partner. If the interest-only payments are affordable based on this lower income, the mortgage is deemed acceptable.
As the income gap closes, RIO mortgages will become a more practical option. With Queenagers increasingly having higher and more stable incomes, the affordability of RIO mortgages in joint applications improves, offering a secure financial product for this demographic and a more feasible and supportive option for their retirement planning needs.
Our innovative products, common-sense approach to lending and expertise in specialist mortgages has been helping customers achieve their goals for almost 60 years.
If you’re looking for more information about how to deliver the best outcomes for your clients in the changing marketplace, speak to one of our BDMs today.
To find out more about our mortgage products, please visit our intermediaries website
