At a glance

  • Women typically need their pension income to last longer, yet they have less saved for retirement
  • Women hold more in cash, missing out on potential long-term returns from investments
  • Many women are failing to protect against the financial impact of illness or death

At a glance

  • Women typically need their pension income to last longer, yet they have less saved for retirement
  • Women hold more in cash, missing out on potential long-term returns from investments
  • Many women are failing to protect against the financial impact of illness or death

At a glance

  • Women typically need their pension income to last longer, yet they have less saved for retirement
  • Women hold more in cash, missing out on potential long-term returns from investments
  • Many women are failing to protect against the financial impact of illness or death

Women face unique challenges when it comes to their finances. The gender pay gap and having to take time out of work to raise children are among the obstacles that affect their earnings potential and ability to save.

According the Office for National Statistics (ONS), women are paid just £380,000 on average over their lifetimes, compared with £643,000 for men.Women also live longer than men, so it's even more important for them to ensure they safeguard their financial future. Luckily, there are actions women can take to protect themselves financially.

Saving for retirement

Women save around a third of the amount that men put away for retirement, according to figures from research body the Pensions Policy Institute (PPI). By the time they reach their 60s, women have an average of £51,000 in their private pensions, compared with £156,500 for men.2

Yet women on average can expect to live 82.9 years, compared with 79.2 years for men. So they typically spend longer in retirement, and therefore need their pension income to last longer.3

Starting a savings plan as early as possible can ease worries about your retirement income. Consider increasing your monthly pension contribution if you’re working. If you’re not working, register for National Insurance credits to protect your State Pension.

Remember that pension contributions of up to £2,880 a year can be made on your behalf, and will be boosted by 20% tax relief. Your partner can pay into a pension for you, or you can put some savings towards starting a pension yourself.

Investing for the long term

The latest figures from HM Revenue & Customs show that men held £3,611 more in their ISAs than women during the 2016/17 tax year. Men had, on average, £29,448 in their ISAs, compared with women, who had saved £25,837.4 Meanwhile, about 4.5 million women stuck to a Cash ISA in 2016/17, compared with 3.7 million men.

Women could consider shifting some cash into another investment. While there are no guarantees of returns, and any investment can fall as well as rise in value, over the long term Stocks & Shares ISAs historically have produced greater returns than Cash ISAs and have the potential to beat inflation.

But before you start investing, consider your reasons for doing so. Having goals in mind, such as planning for retirement or paying towards school fees, can give you the incentive to get started. There are plenty of ready-made portfolios on offer from asset managers to suit your needs, whether you want to opt for a lower- or higher-risk portfolio.

Finally, remember that it’s time spent in the market, rather than trying to time the market, that is the key to successful investing. 

Protecting your income

Fewer women than men safeguard themselves against the financial impact of serious illness or death. According to Canada Life, more than half of women aged between 25 and 45 do not have any insurance against loss of earnings through serious illness or death. Women in this group have also not considered their or their family’s protection requirements.5

However, a woman’s illness or death could have a major impact on family finances. Even if you are a stay-at-home parent, your contribution to the family has a monetary value that would need to be replaced.

There are plenty of options, including life insurance, income protection cover and critical illness cover. If you have children or a mortgage, for example, a life insurance policy will pay out a cash lump sum on your death, and ideally a buffer on top to ensure your family’s financial security.

Income protection insurance can help should you become ill and be unable to work for an extended period, or suffer a disability. Income protection provides a tax-free income that kicks in after a certain period – say, three or six months. This may be set to last for a few years, or until retirement, depending on the level of cover you want.

Critical illness insurance pays out on diagnosis of particular illnesses. This is typically on the more expensive side, and provides a lump sum that could be used to pay off the mortgage, for example.

A financial professional can talk you through your insurance options and offer solutions tailored to your specific needs.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Women face unique challenges when it comes to their finances. The gender pay gap and having to take time out of work to raise children are among the obstacles that affect their earnings potential and ability to save.

According the Office for National Statistics (ONS), women are paid just £380,000 on average over their lifetimes, compared with £643,000 for men.Women also live longer than men, so it's even more important for them to ensure they safeguard their financial future. Luckily, there are actions women can take to protect themselves financially.

Saving for retirement

Women save around a third of the amount that men put away for retirement, according to figures from research body the Pensions Policy Institute (PPI). By the time they reach their 60s, women have an average of £51,000 in their private pensions, compared with £156,500 for men.2

Yet women on average can expect to live 82.9 years, compared with 79.2 years for men. So they typically spend longer in retirement, and therefore need their pension income to last longer.3

Starting a savings plan as early as possible can ease worries about your retirement income. Consider increasing your monthly pension contribution if you’re working. If you’re not working, register for National Insurance credits to protect your State Pension.

Remember that pension contributions of up to £2,880 a year can be made on your behalf, and will be boosted by 20% tax relief. Your partner can pay into a pension for you, or you can put some savings towards starting a pension yourself.

Investing for the long term

The latest figures from HM Revenue & Customs show that men held £3,611 more in their ISAs than women during the 2016/17 tax year. Men had, on average, £29,448 in their ISAs, compared with women, who had saved £25,837.4 Meanwhile, about 4.5 million women stuck to a Cash ISA in 2016/17, compared with 3.7 million men.

Women could consider shifting some cash into another investment. While there are no guarantees of returns, and any investment can fall as well as rise in value, over the long term Stocks & Shares ISAs historically have produced greater returns than Cash ISAs and have the potential to beat inflation.

But before you start investing, consider your reasons for doing so. Having goals in mind, such as planning for retirement or paying towards school fees, can give you the incentive to get started. There are plenty of ready-made portfolios on offer from asset managers to suit your needs, whether you want to opt for a lower- or higher-risk portfolio.

Finally, remember that it’s time spent in the market, rather than trying to time the market, that is the key to successful investing. 

Protecting your income

Fewer women than men safeguard themselves against the financial impact of serious illness or death. According to Canada Life, more than half of women aged between 25 and 45 do not have any insurance against loss of earnings through serious illness or death. Women in this group have also not considered their or their family’s protection requirements.5

However, a woman’s illness or death could have a major impact on family finances. Even if you are a stay-at-home parent, your contribution to the family has a monetary value that would need to be replaced.

There are plenty of options, including life insurance, income protection cover and critical illness cover. If you have children or a mortgage, for example, a life insurance policy will pay out a cash lump sum on your death, and ideally a buffer on top to ensure your family’s financial security.

Income protection insurance can help should you become ill and be unable to work for an extended period, or suffer a disability. Income protection provides a tax-free income that kicks in after a certain period – say, three or six months. This may be set to last for a few years, or until retirement, depending on the level of cover you want.

Critical illness insurance pays out on diagnosis of particular illnesses. This is typically on the more expensive side, and provides a lump sum that could be used to pay off the mortgage, for example.

A financial professional can talk you through your insurance options and offer solutions tailored to your specific needs.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Women face unique challenges when it comes to their finances. The gender pay gap and having to take time out of work to raise children are among the obstacles that affect their earnings potential and ability to save.

According the Office for National Statistics (ONS), women are paid just £380,000 on average over their lifetimes, compared with £643,000 for men.Women also live longer than men, so it's even more important for them to ensure they safeguard their financial future. Luckily, there are actions women can take to protect themselves financially.

Saving for retirement

Women save around a third of the amount that men put away for retirement, according to figures from research body the Pensions Policy Institute (PPI). By the time they reach their 60s, women have an average of £51,000 in their private pensions, compared with £156,500 for men.2

Yet women on average can expect to live 82.9 years, compared with 79.2 years for men. So they typically spend longer in retirement, and therefore need their pension income to last longer.3

Starting a savings plan as early as possible can ease worries about your retirement income. Consider increasing your monthly pension contribution if you’re working. If you’re not working, register for National Insurance credits to protect your State Pension.

Remember that pension contributions of up to £2,880 a year can be made on your behalf, and will be boosted by 20% tax relief. Your partner can pay into a pension for you, or you can put some savings towards starting a pension yourself.

Investing for the long term

The latest figures from HM Revenue & Customs show that men held £3,611 more in their ISAs than women during the 2016/17 tax year. Men had, on average, £29,448 in their ISAs, compared with women, who had saved £25,837.4 Meanwhile, about 4.5 million women stuck to a Cash ISA in 2016/17, compared with 3.7 million men.

Women could consider shifting some cash into another investment. While there are no guarantees of returns, and any investment can fall as well as rise in value, over the long term Stocks & Shares ISAs historically have produced greater returns than Cash ISAs and have the potential to beat inflation.

But before you start investing, consider your reasons for doing so. Having goals in mind, such as planning for retirement or paying towards school fees, can give you the incentive to get started. There are plenty of ready-made portfolios on offer from asset managers to suit your needs, whether you want to opt for a lower- or higher-risk portfolio.

Finally, remember that it’s time spent in the market, rather than trying to time the market, that is the key to successful investing. 

Protecting your income

Fewer women than men safeguard themselves against the financial impact of serious illness or death. According to Canada Life, more than half of women aged between 25 and 45 do not have any insurance against loss of earnings through serious illness or death. Women in this group have also not considered their or their family’s protection requirements.5

However, a woman’s illness or death could have a major impact on family finances. Even if you are a stay-at-home parent, your contribution to the family has a monetary value that would need to be replaced.

There are plenty of options, including life insurance, income protection cover and critical illness cover. If you have children or a mortgage, for example, a life insurance policy will pay out a cash lump sum on your death, and ideally a buffer on top to ensure your family’s financial security.

Income protection insurance can help should you become ill and be unable to work for an extended period, or suffer a disability. Income protection provides a tax-free income that kicks in after a certain period – say, three or six months. This may be set to last for a few years, or until retirement, depending on the level of cover you want.

Critical illness insurance pays out on diagnosis of particular illnesses. This is typically on the more expensive side, and provides a lump sum that could be used to pay off the mortgage, for example.

A financial professional can talk you through your insurance options and offer solutions tailored to your specific needs.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

References

1. Office for National Statistics, Human capital estimates, 2019
2. Pensions Policy Institute report, Understanding the gender pensions gap, 2019
3. Office for National Statistics, Life expectancy, 2018
4. Gov.uk, Individuals subscribing to an ISA by age and gender, 2016-17, tax year ending 5 April
5. Canada Life, May 2019

References

1. Office for National Statistics, Human capital estimates, 2019
2. Pensions Policy Institute report, Understanding the gender pensions gap, 2019
3. Office for National Statistics, Life expectancy, 2018
4. Gov.uk, Individuals subscribing to an ISA by age and gender, 2016-17, tax year ending 5 April
5. Canada Life, May 2019

References

1. Office for National Statistics, Human capital estimates, 2019
2. Pensions Policy Institute report, Understanding the gender pensions gap, 2019
3. Office for National Statistics, Life expectancy, 2018
4. Gov.uk, Individuals subscribing to an ISA by age and gender, 2016-17, tax year ending 5 April
5. Canada Life, May 2019

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