International Women's Day 2020- looking to the future

Posted 06.03.2020

As International Women’s Day approaches, the team at Rhodes Wealth Management are looking at pension provision for women – and the importance of planning for your future.

Gender pension equality has been an issue of increasing concern over recent years, with the structure of pension freedoms failing to consider women’s working patterns over time.

As calls for reform become increasingly common, a proportion of women are left without enough pension provision for their future. Statistically, divorced women suffer more than others, averaging just a £26,100 pension pot in contrast to £103,500 for divorced men. This is compounded by the gender pay gap, with women earning on average around 17% less than men over their lifetime.

A lack of awareness can often lead to the alarm not being raised until it is too late to alter course, and 4 in 10 women (Aegon, 2019) have not estimated the amount they need for retirement, compared with a third of men. With pension planning, it is a case of the earlier the better- with the eighth wonder of the world, compound interest, supporting this long-term attitude to planning and saving.

Methods of communication have also hindered female investors’ opportunity to understand their pension options, with the language and approach used by many financial institutions targeted towards a male audience, using numbers and returns. Research suggests that women engage with a focus on long-term outcomes.

So, what can you do to ensure you’re planning for your future, and aware of your allowances and pension freedoms?

  1. Get familiar with your workplace pension, be aware of what your employer contributes and whether they will increase their contributions if you do.
  2. Explore your employer scheme’s range of options – for example some have specific Ethical Funds.
  3. Keep contributing when you’re on maternity leave or taking a career break, wherever possible.
  4. If you’re self-employed, ensure that you set up a pension for yourself. It may also be worth looking into a Lifetime ISA (LISA).
  5. Think about what you’d like from your retirement – what goals you have. You can use a pension calculator to work out how much you should be putting by to achieve these.

If you’d like to talk to one of our friendly and approachable team about planning for your future, get in touch today on 01332 497670.

Pensions Policy Institute, Understanding the Gender Pensions Gap, July 2019

Aegon, A-E exemptions and low engagement fueling pensions gender gap, November 2019

Please note that St. James’s Place do not offer a LISA.

The value of an investment with St. James’s Place may fall as well as rise. You may get back less than you invested.

To our valued clients

We understand that the current climate is concerning, and we are here to provide support during these challenging times.

Rhodes Wealth Management are doing everything within their capability to prevent disruption and continue to care for our client and employee wellbeing.

We will continue operating and prioritising our client's needs and will be available to provide advice and reassurance.

Our advisers are offering telephone or video appointments to help you through this difficult time.

The team are now working from home in line with government guidelines until further notice, however we remain available for contact over the phone within our normal opening hours of 9am - 5pm, Monday to Friday.

If you have any concerns or would like to speak to a member of our team, please call on 01332 497670 or email us at rwm@sjpp.co.uk.

Rhodes Wealth Management Limited is an appointed representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's Wealth management products and services, more details of which are set out on the Group's website. The titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.