Lyndhurst Financial Management, a leading Hertfordshire based financial planning and financial advice company, set up its Focus for Women department two years ago to offer its female clients a service that not only specifically relates to their needs but also provides a wealth of expertise from female financial advisors, which a number of women prefer.
A recent media and government focus on the finances and savings of women has shown a number of factors, which impact negatively on the long term financial security of women, namely that:
- Women are more likely to save than men early in their careers, but typically the amount they save is less.
- They are also more risk averse than men, being reluctant to invest in stocks and shares, preferring to choose a seemingly less risky option such as ISAs for their savings – which over a long investment period, will typically yield lower returns.
- There continues to be a large gender pay gap despite much needed progress in the workplace.
These factors amongst others undoubtedly impact significantly on the pensions of women at retirement. Research from the Insuring Women’s Futures organisation revealed that when an average 65-year old woman retires she is likely to receive a pension pot of approximately £35,800, in stark contrast to a man of the same age who is likely to have a pension pot up five times greater or more, which could be as much as £175,000.
Ironically, due to greater longevity, women’s pension pots are generally required to last longer and their care home costs are on average roughly double those of men, putting considerable pressure on their income and quality of life in retirement.
Susan Leggott, who is training to become a financial adviser and previously worked in the City, says
“Prior to joining the team at Lyndhurst I had not wholly appreciated the value of good financial advice, particularly early in career. This is true for anyone, but particularly for women, where evidence shows they are facing significant financial challenges compared to their male counterparts. The more time they have to plan and invest wisely, the better off they will be in later life.
A secure financial future is something we all want to achieve and more women are taking responsibility for their finances. It’s a very exciting time – good financial health has been proven to have a positive effect on overall wellbeing and women deserve the same peace of mind as men”.