Financial Empowerment in Retirement: International Women's Day 2024

As we recognise International Women’s Day on 8th March, it’s essential to address a topic often overlooked: financial empowerment, particularly in relation to pensions. The disparity between men's and women's pension wealth is a pressing, growing concern that merits attention and action.??

Pensions represent more than just savings; they are a cornerstone of financial security in retirement. However, statistics reveal a significant gap in these savings, with women's median pension wealth notably lower than that of men.??

Research from the Pensions Policy Institute shows that by the time women reach state pension age, they’ll have saved ￡69,000 on average, whereas the average man will have saved ￡205,000. This huge discrepancy highlights the need for proactive measures and greater awareness of the issue to bridge the divide.?

What we don’t want to happen is for women to reach retirement without enough funds; we need to combat the challenges women face with their savings sooner rather than later.?

To address this challenge, there are several steps we can take to work towards an equal standing when it comes to saving for the future:?

1. Early Engagement: Starting proactive financial planning early on is paramount. Establishing a habit of regular contributions to pension funds, even with small amounts, can yield substantial long-term benefits. Starting this practice early not only allows for the growth of investments but also cultivates positive financial habits in the long run.?

2. Taking Advantage of Workplace Pension Schemes: Participating in workplace pension schemes is like setting retirement savings on autopilot. Employer contributions are invaluable additional funds to grow your pot so it’s a no brainer to make the most of these. Consistent contributions not only lay the foundations for a comfortable retirement but also maximise the power of compound interest to grow those savings.?

3. Diversification of Savings: Exploring supplementary savings avenues is important, such as Individual Savings Accounts (ISAs), investment in stocks and shares, or engaging in salary sacrifice savings schemes to reap those tax savings can enhance financial resilience significantly.??

4. Advocacy: Beyond individual actions, advocating for policies that promote gender equality in the workplace can help bridge the gender gap significantly; and it's something we can all do.

Efforts to address the gender pay gap, like advocating for policies that safeguard pension benefits during parental leave/career breaks are instrumental in fostering better financial security for women in the workplace.?

The increasing popularity of remote work is also a step in the right direction. Embracing flexible work arrangements helps to facilitate women's professional aspirations while helping them to retain (and/or grow) financial stability. By championing flexible policies that are conducive to gender equality, we not only pave the way for greater empowerment for women in work, but also contribute to reshaping the landscape for future generations.?

This International Women's Day, let us #InspireInclusion by celebrating the resilience and determination of women navigating their financial journeys.?

“When we inspire others to understand and value women's inclusion, we forge a better world.?And when women themselves are inspired to be included, there's a sense of belonging, relevance, and empowerment.” – IWD.?

By continuing to have these discussions and participating in actionable improvements in policy, we can cultivate a future where women retire on their own terms.??

#IWD2024 #InspireInclusion