Over the last few years we’ve run many survey-type stories highlighting that women are often the poor relations when it comes to saving and investing. They often fare worse on pension saving, lack confidence in investing and have less set aside.
We’ve covered the latest in a long line of surveys this week showing that the issues extend not just to women at the lower income scales but also well off women too, the kind who might visit a Financial Planner.
Two in five women (35%) with investible assets of over £250,000 fear will never enjoy the retirement they want and expect, compared with 20% of men, according to a new report. More than a third of women (35%) surveyed by wealth manager Rathbones say they do not believe their retirement income will allow them to enjoy a high quality retirement.
This is not right and needs attention.
I’ve always felt one of the most positive aspects of Financial Planning is that most, if not all planners, will insist on talking to both halves of a couple in order to build a long term financial plan that suits both parties. This is by far the fairest way to proceed and looks after women's interests.
According to the survey two in five women (38%) approaching retirement were unsure how to turn their pensions and investments into regular retirement income, compared to just one in five men (19%).
I suspect women who choose, or are unable to afford to use a Financial Planner, fare the worst.
The lack of planning is apparent but what’s to be done?
One important step forward will be to accept that many women are disadvantaged when it comes to Financial Planning in general. Many will work part time, take career breaks to look after children and become primary carers. Many may not return to work full time after having children.
This is actually a positive for society because it means that that care providing within a family is taken seriously and children benefit from having at least one parent devoting most of their time to looking after and nurturing them. We should welcome this is a desirable thing but the downside is that for many women finances are often pushed to one side.
On this topic, this week I read a very interesting case study on the BBC News website about personal finances for one couple. When they had children the wife gave up work for a few years and they agreed the husband would fund her pension plan while she was not working. They are now reaping the benefits of this approach which is very much holistic.
Women being under-planned or under-financed is not mistake but if we do not accept it needs attention many women will suffer in future financially and that will benefit no-one.
Women need a financial confidence boost at the same time and should not be made to feel guilty or the ‘weaker’ party just because they care for children or the family more generally. They deserve to be taken care of financially for their sacrifice.
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Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience in finance, business and daily news. This topical comment appears most weeks, usually on Fridays but occasionally other days. Email: