When it comes to financial planning, we are all individuals. Yet some financial issues tend to befall women much more than men. As a result of lifestyle and career reasons many women find themselves facing different challenges than men. As Amanda Newell, Financial Planner explains, these challenges generally fall into three areas:
Longer life expectancy – Women have a longer life expectancy than men, resulting in longer retirements. Consequently, the need for retirement income is greater too. State pension ages have been rising – UK women will reach parity with men at 67 in 2028; Spain, Germany and France will raise retirement ages from 65 to 67 years between 2023 and 2029 and the Belgian government plans a rise to 66 in 2025 and to 67 in 2030 for men and women. Yet in many countries women’s retirement age remains lower than men’s.
The gender pay gap – On average women still earn approximately 20-25% less than their male counterparts. The World Economic Forum calculates that this gender pay gap will take around 202 years to close.
Family commitments – Women are more likely to take responsibility for family commitments through their lives. Time away from the workplace, and earning, can be the result of maternity leave, ongoing childcare needs and taking care of elderly relatives. The result is that some women find their careers and earning potential progress more slowly. The combination of these factors ultimately result in lower pensionable earnings and private savings for women.
The right approach
In facing these issues, women must consider a long-term, bespoke approach to financial planning. The right adviser can help explain and manage the options, taking into account savings potential, multi-country work and career gaps.
Strategically, women are also more cautious and take less risk than men. This can significantly affect what course of financial planning and investment is suitable. Women are also more likely to pursue ethical investment strategies, taking into account climate change and sustainability factors – requiring specific approaches.
It’s important to always consider fees – as a naturally more cautious investor having a transparent view of costs and penalties will help minimise the impact of necessary charges.
Bespoke financial planning
Societal and legislative changes are improving the landscape for women in the workplace. When planning for retirement, inherent disadvantages need not prove too damaging with the right plans in place. Any advice should allow for the need to compensate for saving or pension underpayments and career gaps, and take account of any approach to risk and rewards.
At The Fry Group, we offer a professional financial planning for women service tailored to individual requirements. We will help ensure that your financial affairs are in safe hands, and our team of experts will take time to understand what is important to you. We pride ourselves on being open, clear and approachable at every stage. You will also have the choice to meet with a female financial adviser, if you’d prefer.
For further information please get in touch.
Amanda Newell, Financial Planner