Why financial planning is different for women

Posted 07.03.2024

Financial Empowerment for Women this International Women’s Day 

This International Women’s Day, as our attention is drawn to celebrating the achievements of women and promoting equality, it raises the all-important topic of women and finance.

In this article, we discuss why many women benefit from receiving a different kind of financial advice, one which is tailored to empowering them to take an active role in their financial wellbeing.

Why is financial planning different for women?

There are several factors why women need a different financial plan to men. Firstly, women tend to have longer life expectancies compared to men[i], requiring more investment to ensure financial security for their retirement. Yet this can be challenging for women, particularly as they often experience interruptions in their careers for caregiving responsibilities, leading to potential gaps in employment and lower lifetime earnings.

All these things can not only influence their finances, but also their perception of money.

Women tend to have more of an emotional connection to money; viewing it as a means to provide security for themselves and their families – and this can make them cautious with spending and investing less than their male counterparts.


Why women need more retirement provision than men

Women typically need a larger retirement fund than men for several reasons:

Longer life expectancy

On average, women tend to live longer than men. The Office of National Statistics predicts 79.4 years for males and 83.1 years for females[ii]. This means they may need to fund a longer retirement period, requiring more savings to maintain their standard of living.

Lower Lifetime Earnings for females

Women often earn less over their lifetimes due to various factors such as the gender pay gap, career interruptions for caregiving responsibilities, and working part-time. Lower lifetime earnings can result in smaller pension pots.

Higher Healthcare Costs for females

Women may face higher healthcare costs due to longer life expectancy and specific female health needs, such as preventive care, menopause, screenings, and treatments for conditions like osteoporosis and breast cancer.

Caregiver Responsibilities

Caregiving responsibilities for children, aging parents, or other family members are often left in the hands of women. These responsibilities can impact their ability to work full-time and contribute consistently to retirement savings, making it crucial to have a larger nest egg to cover potential financial gaps.

“All of these factors should be considered in their financial plan.” Says Lucy Coates, Financial Adviser at Rhodes Wealth Management. “Many women want to be financially independent – whether they are married or not, and a solid financial plan plays a key role in achieving financial independence and being able to fulfil their long-term goals. It’s not just about beating inflation; it’s about making our money work as hard as it can for us.”

Financial planning for women going through divorce

Women tend to prefer dealing with female financial advisers if they are going through separation or divorce.  They feel more comfortable discussing personal and sensitive financial matters with someone who shares similar life experiences and perspectives.

Heather Brobyn, Financial Adviser at Rhodes Wealth Management: “Going through divorce can be a turbulent and emotional time, especially where money is concerned. Many women find it easier to speak to a female financial adviser who can offer empathetic support and guidance.”

Financial Planning for female business owners

Unsurprisingly, we are seeing a lot of female business owner clients putting off their personal financial planning because they are so busy running their own business, juggling childcare and running a household.  Yet it’s during these busiest times that women need sound financial advice, and a financial plan that is tailored around their lifestyle for today and one they hope for in the future.

We know that making decisions and having a clear plan is the key to a financially sound future, and being able to trust and feel listened to by your financial adviser is key. Here at Rhodes Wealth Management, we have two female financial advisers who support many of our female clients here by offering bespoke financial advice.

Book a call with our female advisers today >>

[i] ONS Census 2021 https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/nationallifetablesunitedkingdom/2018to2020

[ii] ONS Census 2021 https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/nationallifetablesunitedkingdom/2018to2020

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