Empowering Women with Financial Advice: Top 10 Reasons It’s Essential in the UK

In the UK, financial empowerment for women is not just about equality; it’s about smart planning and recognising the unique challenges women face. With issues like the gender pay gap and career breaks impacting long-term financial health, tailored financial advice is critical. Here’s why financial advice is invaluable for women.

1. Tackling the Gender Pay Gap

In the UK, the gender pay gap means women can often find themselves at a disadvantage when it comes to savings and pensions. For example, the reduced earnings translate into lower pension contributions over a career. A financial adviser can help devise a savings strategy that compensates for this gap, leveraging ISAs, investments, and efficient tax planning.

2. Preparing for a Longer Retirement

Women generally live longer than men, which means a potentially longer retirement period. It’s essential to have a robust pension strategy that can last 20-30 years or more. Financial advisers can help plan for this extended period with a mix of annuities, flexible drawdowns, and state pension entitlements to ensure a comfortable retirement.

3. Career Interruptions and Their Financial Impact

Many women take career breaks for caregiving or parental leave. Such breaks can significantly impact pension pots. For instance, a five-year career gap could reduce your pension by an estimated 10% at retirement. Financial advice can help set up a plan to make voluntary National Insurance contributions or adjust savings during working years to fill these gaps.

4. Financial Resilience Through Life’s Transitions

Life events such as divorce or becoming a widow can have a profound financial impact. A financial adviser can be instrumental in these transitions, helping to reassess financial standing and adjust plans accordingly. This could mean restructuring investments, revising pension beneficiaries, or securing life insurance.

5. Demystifying Investments and Building Wealth

Investment can be an excellent avenue for growing wealth, but it’s often underutilised by women. Whether it’s understanding the benefits of compounding interest in stocks and shares ISAs or the potential of a diversified portfolio, financial advisers can provide education and confidence in investment choices.

6. Financial Planning for Maternity and Beyond

The cost of raising a child in the UK can be substantial, and maternity leave can impact income. For example, if you’re planning for a year off, you might face a shortfall in your salary after the first six weeks at 90% pay. Advisers can help plan for these eventualities with short-term savings strategies or adjusting monthly budgets. How you ensure your children are financially looked after, if you were to die, is a key consideration.

7. Bridging the Pension Gap

With lower lifetime earnings on average, women’s pension pots are often smaller than men’s. A financial adviser can implement strategies like topping up your pension with extra contributions whenever possible or considering other retirement income sources, such as property or passive income streams.

8. Building Financial Confidence

A lack of confidence can deter women from making bold financial decisions. By providing knowledge and understanding of financial products, financial advisers can empower women to take charge. For instance, understanding the risk-reward profile of different investments can transform a saver into an investor.

9. Comprehensive Estate Planning

Estate planning ensures that your wealth is managed and distributed according to your wishes. Women, as often the primary caregivers, need to consider how their assets will support their dependents. Advisers can help with wills, trusts, and inheritance tax planning, ensuring that your legacy is secure.

10. Securing Financial Independence

Financial independence is about having the freedom to make life choices without fiscal constraint. It’s about having the security to deal with unexpected expenses and the capacity to enjoy your life. Financial advice helps women achieve this independence by creating bespoke financial plans, be it through investing in property or building a share portfolio.

Summary

The need for bespoke financial advice among women cannot be understated. With the right guidance, women can navigate the financial challenges unique to their life situations and achieve their goals, whether that’s a secure retirement, wealth accumulation, or financial autonomy.

What to do now?

Take control of your financial future today. Contact us to book an appointment and start your journey to financial empowerment with advice tailored for the unique challenges and opportunities faced by women in the UK. If you prefer, request one of our female advisors when you request a call back.