2 unmissable financial planning tips for women in celebration of International Women’s Day 2024

International Women’s Day falls on 8th March this year.

For instance: did you know that it was only in 1974 that women could apply for a credit card without a male signature, meaning they could take out their own mortgage without male help for the first time in that year?

Plus, it wasn’t until 1973 that the first women were allowed to trade on the London Stock Exchange.

Shockingly, according to Go Henry, pubs could even refuse women service until 1982, on the legal grounds that pubs were considered a “men’s space”!

Fast forward to 2024, the women’s liberation movement has reached new heights. Yet although women are legally equal to their male peers, there are still gaps in economic equality to this day.

Financial planning can help women tackle the disadvantages they may face, and we’re here to help.

Read on to find out two unmissable financial planning tips that can help empower women to reach their financial goals in 2024 and beyond.

1. Place your pension at the top of your priority list

Sadly, there is a wide gender pensions gap that could see women retiring with less than half the pot value of their male peers.

Indeed, according to research published by HSBC, women will retire with an average of 80% less wealth than their male peers, and 31% of women rely on their partner’s pension as their main source of funding in retirement.

These statistics may shock you, but a 2022 report from the House of Commons Library cites multiple factors that contribute towards the gender pensions gap. These include:

• Extended periods of economic inactivity, mostly due to women giving up work to raise a family
• The gender pay gap, which sees women pay fewer pension lodgements and National Insurance contributions (NICs) than their male peers over the course of their lifetime
• Women’s increased life expectancy, which means they must stretch their existing retirement savings further on average
• The inequal splitting of pension assets during divorce proceedings.

So, if you are a woman wanting to boost your financial circumstances over the long term, prioritising your pension is essential.

Even if you aren’t yet approaching retirement, booking a pension review with an experienced Financial Planner can help you understand your circumstances. Not only is your private pension pot one of the most valuable assets you own, but your time in the labour market also determines your State Pension entitlement when you retire.

Working with an expert can empower you to take your retirement plans in your own hands.

2. Explore investment opportunities, even if you’re naturally risk-averse

It’s never been easier to invest your wealth, yet many women still avoid actively investing altogether.

Indeed, although it’s been 50 years since the first women were admitted to the London Stock Exchange, research shows women have a stronger aversion to investment risk than men.

Unbiased reports only 10% of UK women have a Stocks and Shares ISA, compared with 17% of men. Plus, only 7% of women hold separate investments or unit trusts, yet double this number of men do the same.

The truth is: investing does pose a risk to your money, but it can also grow your wealth in a much more lucrative way than leaving all your money in cash. And, taking too little risk with your money can result in you not achieving the growth you need to meet your long-term goals.

Although there is no evidence to support the claim that women are generally more risk-averse than men, it could be that investing has been a “boys’ club” for too long, preventing women from confidently entering the field.

Yet goals-based investing that sets clear targets over the long term could be the most reliable way to make your financial dreams come true.

By growing your wealth slowly through investing in a diverse portfolio over a period of decades, you could:

• Build a “nest egg” for your children to benefit from down the line
• Retire at the age you want
• Boost your retirement income significantly
• Leave wealth to the next generation when you pass away
• Bolster your independence, even if you’re married.

Of course, investing does pose a risk to your wealth. If you’re a first-time investor, it could be highly beneficial to work with a Financial Planner who can assess your attitude to risk and help you curate a portfolio designed for your unique goals.

Ultimately, the recent celebration of International Women’s Day could be the perfect prompt to kickstart your long-term financial plan.

Get in touch

If you’re a woman who is yet to create your own investment portfolio, review your pension, or form a long-term financial plan, contact us today. Email enquires@pen-life.co.uk or call 01904 661140.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

All information is correct at the time of writing and is subject to change in the future.