Is there a gap in your financial health?

The gender pay gap – we’ve all heard this phrase before, often in the context of salaries and businesses making sure they’re transparent about their remuneration packages. But, did you know that this gap has a lesser known sister? The pensions and investment gap!

Studies show that men often have more saved in pensions and investments than women despite the evidence that women are better investors than men (something you can find out more about here).

So why does this gap exist?

There are several reasons; from women typically being the ones to take career breaks, to a lack of consideration for pension sharing during a separation.

Of course, our approach to helping clients achieve financial freedom is the same for everyone and this week we’re looking at some of the key areas to look at to make sure the only gap you’re minding is underground…

• It’s often the case that women keep the property during a separation, with men taking the larger share of pensions and investments. Did you know pension sharing exists? It means that pensions are split at the point of separation rather than later down the line, meaning each party can use the funds independently. Scottish Widows reported that only 3 in 10 couples considered pensions during a divorce. Of course, splitting assets fairly is key in this situation but make sure you’re aware of all the options.
• Child benefits and pensions: if your household income is over £50k and you’re choosing not to claim child benefit because of the tax implications, your state pension could be affected – you may not earn the national insurance credits needed to qualify. However, you can claim the benefit but elect to not receive the money, ensuring that those credits are continuing to build up during any career breaks.
• Employer support: make the most of the support offered by your employer e.g. sharing childcare leave and making the most of flexible working!
• Financial advice: both men and women need to feel comfortable accessing financial planning advice, this is something we’re very aware of at Cooper Parry Wealth as we deal with people from a wide variety of situations. We’re used to working with business owners, those who have built their assets up over time, the recipients of inheritance or clients who want to understand their situation during a divorce. We have experienced male and female advisers in case you have a preference.

We always base our advice on evidence and experience so if you’re concerned about either your own or a loved one’s gap getting bigger let us know, we’d be happy to help.

Sources: Scottish Widows Women & Retirement Report

This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. The value of investments and the income from them can go down as well as up, and you may get back less than you originally invested. Past performance is not a guide to the future. The investments described are not suitable for everyone. This content is not personalised investment advice, and Cooper Parry Wealth can take no responsibility for investment decisions you may make as a result of this information.