Our new research with Scottish Widows puts a name to something: the participation gap.

This isn’t the same as the well-documented and discussed advice gap.

These are people who have the assets, the need and the intention to get advice and still don’t make it through the door. Or they’re half of an advised couple and don’t come to the meetings. They can look uninterested. Often they just don’t feel confident joining a conversation that still seems intimidating from the outside or designed for someone not like them.

Since we named it, I’ve seen it everywhere: in conversations with advisers and clients, and in places that have nothing to do with financial services.

On a fitness podcast! Dr Stacy Sims, the exercise physiologist and researcher, was talking about what happens when women move into spaces they’ve historically not been such a part of. Because they haven’t been in the room as much, there’s a sense that “when you’re invited in, you’d better not make a mess”. Not a literal mess, but the quieter pressure not to be an inconvenience, not to shake things up, not to be more than expected. She was talking about fitness. She could have been describing the participation gap.

Even inside financial services. Since the report came out, several people in our industry have told me they recognise themselves in it. They work in financial services every day, yet still don’t feel comfortable making the first approach to get advice.

Around an advisers’ table. At an adviser forum this week, it came up again and again. An attendee described a friend who is set to inherit from her father. Her adviser, she says, doesn’t listen to her. Being in an advice relationship is no guarantee of feeling like an active participant. She’s already planning to go elsewhere.

And several talked about clients who say their partner isn’t interested and doesn’t need to be in the meeting.

Our research found that nearly half of advised couples have one client and one partner who is a passenger in the relationship. The quieter partner may genuinely not want to be more involved. But often what looks like a lack of interest can be a lack of relevance. They may not want a detailed conversation about equities and bonds, but they do care about what their money makes possible: security for their family, choices, freedom and the life they want to live.

Why naming it matters

Once something has a name, you stop treating each case as a one-off. The friend, the ‘disinterested’ partner at home and the industry colleague look like different stories. They’re the same one.

The participation gap isn’t about one group. It affects quieter personalities, people who feel they should understand pensions and investments before they can ask for help, those who are first in their family to build investable wealth, and anyone who grew up where money wasn’t discussed. Much of what we treat as normal in advice, from the language to the risk questionnaires, was shaped around the people already in the room.

Get it right for some, and it works for all

This idea ran through our research. Design advice for the client who feels like a guest and it works better for every client.

You don’t need to know which client is unsure. Assume someone might be and adjust for everyone.

You don’t have to change everything

Adjusting doesn’t mean ripping up existing processes. Often it comes down to small tweaks or a change in the phrasing you use in a meeting.

A few examples of what that can look like:

• Open with ‘What would make today useful for you?’ so the client sets part of the agenda.
• Instead of “Any questions?” at the end, try ‘Lots of people ask me about X. Is that something you’ve wondered about?’
• With a couple, say ‘I’d like to hear from each of you’ early on, and mean it.
• Say ‘Stop me if I’m going too fast’ before you need to.

Make the mess

Naming the participation gap was the start. Now that we can see it, we can design for it. For advisers: build a room where every client, whoever they are, feels free to take up space in the conversation in whatever way is right for them.

And to anyone who’s been invited in and is worried about making a mess: get in there! Say something unexpected. Say something real. Say the thing you think can’t be said. Everyone in the room is better for it.

Julie Best, Insight Director, NextWealth

FAQs:

1. What is the participation gap in financial advice?

The participation gap describes people who have the assets, need and intention to seek financial advice but do not fully engage with the advice process. This may include people who feel intimidated about approaching an adviser, lack confidence discussing money or take a passive role in meetings with their partner. Unlike the advice gap, which focuses on people who do not access financial advice, the participation gap highlights barriers that prevent people from feeling confident, included and actively involved.

2. What is the difference between the participation gap and the advice gap?

The advice gap refers to people who could benefit from professional financial advice but do not access it. The participation gap focuses on people who may already have access to an adviser but do not feel able or confident to participate fully. For example, someone may attend meetings with their partner but feel excluded from discussions about investments and financial planning. Addressing both gaps is important to make financial advice more accessible, inclusive and relevant.

3. Why do some clients feel excluded from financial advice?

Clients may feel excluded from financial advice because of intimidating financial terminology, a lack of confidence, previous negative experiences or the perception that advice is designed for people with greater financial knowledge. In couples, one partner may also feel that the conversation is directed primarily at the other person. What advisers interpret as a lack of interest may actually reflect a lack of relevance, confidence or opportunity to contribute.

4. How can financial advisers help close the participation gap?

Financial advisers can help close the participation gap by creating a more inclusive advice experience. Simple changes include asking clients what they want to get out of a meeting, inviting each partner to share their views, explaining financial concepts in accessible language and encouraging questions without judgement. Focusing conversations on clients’ personal goals, such as family security, financial freedom and future choices, can also help people feel more confident and engaged in financial planning.