1. Mind the gap
Dream holidays. Family outings. Home alterations. Care costs. Retirement can be more expensive than you think. Women approaching State Pension age are already at a financial disadvantage when compared to their male counterparts.
A lifetime of contribution inequality means men’s pensions are estimated to be worth an average of £92,000 compared with just £39,000 for women. As a result, retired women in the UK have to get by on £7,600 a year less than men on average with 36% of women facing hardship in retirement.
2. Take stock: how can I become a more confident and effective investor?
We know that investing can feel daunting. Half of women do not feel investing is for them compared with 38% of men. As a result, only 26% of women invest in a stocks and shares ISA compared with 37% of men.
How can I balance risk with reward?
Instead of exploring alternative investment options, 66% of women aged over 55 prefer traditional bank accounts, which are unlikely to keep pace with inflation.
Risk is a key factor for women when managing their finances in later years: 48% of those aged 55-plus say they would not consider investments involving financial risk. However, only 27% of men in the same age group feel this way.
How can I make my money work harder?
Developing a clear investment strategy with your Finli planner will allow for a balanced approach to risk and reward.
By becoming a more confident and effective investor, you can take control of your financial future and empower the next generation of women to do the same.
3. A lasting legacy: how can I plan for an inheritance?
Faced with an impending pension and savings shortfall, it’s understandable that funds from a potential inheritance might become part of your financial plan in later years.
Although women are 45% more likely to have inherited assets than men, they are less likely to have taken expert advice. Nearly 70% of men have discussed investing their inheritance with an adviser compared to 43% of women9.
How can I minimise Inheritance Tax bills?
Receiving and leaving an inheritance can have major tax implications, resulting in large bills for loved ones. Your Finli planner can help you explore different ways to minimise inheritance tax obligations and maximise the investment opportunities of an inherited lump sum.
What happens if my partner dies before me?
With lifespans and care costs increasing, relying on an inheritance to plug financial gaps in later life can be a risky strategy – especially for women who often outlive men.
Around half of widowed women experienced significant financial difficulties following the death of their spouses, according to a US study. As a result, 68% had to make immediate changes to their financial activities10.
Although it can be difficult to envisage a life without your partner, planning ahead can help to ease the financial and emotional burden when the time comes.
As well as reviewing your finances with your Finli planner, it’s a good idea to update your Will and consider granting Lasting Power of Attorney to a younger friend or relative.
Join the women seizing the financial initiative
Greater knowledge empowers women to better manage their personal finances to achieve their personal goals. Talk to your Finli planner today about how to increase your financial security and peace of mind.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.