Five things women can do to prepare for retirement

8 min read 27 Feb 23

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Society talks a lot about gender inequality in many forms, for example the lack of representation of women in leadership roles or the ways women are discriminated against in certain professions. But what about gender inequality when it comes to retirement planning?

Although there are of course exceptions to every rule, it’s fairly safe to say that traditionally the financial industry and the household finances were looked after by men. A typical 1950’s picture in the UK showed men going out to work and women assuming the role of housewife, looking after elderly relatives and/or raising children.

And women are still, in many families, the primary caregivers for children as well other family members in need. This often results in women putting careers on hold, either partially or entirely. And, as a result of working less, women will often have a smaller (or no) workplace pension and less income to invest for their retirement nest egg.

Another contributing factor to women’s weaker financial position in retirement is the gender pay gap. According to the Office for National Statistics (ONS), the gender pay gap in ^2023 was 14.3%. This means that women earned 14.3% less than men for their labour, whether they'd taken time out of the workplace or not. Less pay means less disposable income than men to invest and save for retirement.

All of these factors are likely to contribute to the fact that women generally have a lower sense of financial confidence when it comes to their financial future in retirement.

^Gender Pay Gap – Office for National Statistics 2023

Building a more secure financial future is important for everyone, but especially for women, whose lower savings and longer life expectancies put them at risk of outliving their money. If you’re thinking about your financial future and how to position yourself better for retirement, here are some things to think about.

A financial adviser will learn about you and your needs, then recommend ways to help get your money working as hard as possible so you can reach your goals. For example, an adviser may be able to find ways to mitigate the potential financial impact of any career breaks you may have taken, see what risk you are comfortable taking and can afford to take, and create a plan to get you on track for the retirement you want.

If you don’t already have an adviser but would like to explore this option, you can find a financial adviser that's right for you.

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