The following blog post on financial planning for women is written by Collette Steele, Infinity Financial Planning Ltd.
Statistically, women will outlive their spouses but will typically have a lower lifetime income. In addition to this, women either will or are caregivers to parents, children and spouses. These factors can have significant financial planning consequences for households.
Single/Separated/Divorced/Widowed women have a greater financial planning need than the average single man or couple. Why? This is due to longevity. Women statistically live longer than men but will typically have less money to do so. Therefore an average woman should have a bigger pension fund than the average man.
From our experience of providing financial advice to women, Here are some important points to consider:
- Will your pension fund be enough to last for 20 plus years after retiring?
- How will you cope if you were diagnosed with a serious illness or unable to work for a long period of time?
- If you have money on deposit, is the return in line with inflation? Ensure your hard earned money is working for you.
- Have you considered how compound interest can benefit you, for both investments and pension?
- Have you thought about who you would like to receive your estate upon death, and how they may be affected by Inheritance Tax?
- Are you claiming all relevant tax credits which apply to you? Have you claimed back any overpaid tax?
- As divorce rates are continuing to rise, this creates a greater need for women to be aware of their finances both in the short, medium and long term
Financial Advice for Women
Divorced or otherwise, in the short term, day to day budget and expenses will need to be adjusted. Titles on assets may need to be changed as well as possibly the beneficiaries in your will. Any lump sums received from a divorce settlement will need to be managed carefully. Overall, the financial needs of a divorcee are completely different to those of a married couple. While this is an extremely difficult and stressful time, availing of the services and experience of a qualified financial plannerwill ease financial pressures sign.
It is never too early to prepare for your financial future. The first step is to meet a qualified and reputable financial planner who will undertake a complete financial health check, analysing your current situation and identifying where you want to be. By doing this, you are significantly reducing your longevity risk.
The best time to start financial planning is now. By analysing your current position, together we can devise a plan to achieve short, medium and long term goals. This will reduce your financial stress and put you in control of your finances, no matter what the future holds. Contact our certified financial planners for more information on financial advice for women.
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