As the new year begins, it’s the perfect time for women to take charge of their financial future. With research showing that women over 55 face a £5,700 annual pension income gap compared to men—and often spend £1,200 more than their retirement income—setting resolutions to improve financial well-being is more important than ever.
The Challenges Women Face
- Income Disparity: Women anticipate £18,000 annually from pensions, compared to £23,700 for men.
- Savings Gap: Women have an average of £128,000 in cash and investments, while men hold £209,000.
- Uncertainty: 36% of women over 55 are unsure of their annual pension income, versus 20% of men.
These gaps make it essential for women to approach retirement with intentional strategies, and the new year offers an ideal opportunity to commit to financial resolutions.
Resolutions for Financial Security in Retirement
- Understand Your Current Position
- Resolution: Schedule time to review pension statements and calculate expected income.
- Action: Use pension tracking tools and online calculators to identify any gaps.
- Save More, Strategically
- Resolution: Increase retirement savings contributions.
- Action: Set up a monthly direct debit to your pension fund or ISA, even if it’s a small amount. Compounding will work in your favor.
- Diversify Your Income Sources
- Resolution: Explore alternative income opportunities.
- Action: Research options like property income, part-time work, or low-risk investments to supplement pension income.
- Educate Yourself on Financial Options
- Resolution: Commit to learning more about retirement planning.
- Action: Attend workshops, read financial blogs, or work with a trusted financial adviser to make informed decisions.
- Set a Spending Plan
- Resolution: Create a realistic budget that aligns with your expected income.
- Action: Identify areas where you can cut back and reinvest savings into your retirement fund.
- Advocate for Yourself and Others
- Resolution: Speak up about financial inequality and support initiatives for fair workplace pensions and pay.
- Action: Join local groups or national campaigns focused on closing the gender pension gap.
Why It Matters
Dr. Greg B Davies of Oxford Risk points out that financial advisers and wealth managers can play a vital role in helping women optimize their retirement strategies. Starting the year with clear financial resolutions can help women build confidence and security as they prepare for the future.
Make This Year Count
By taking proactive steps now, women can begin closing the gaps and securing a more comfortable retirement. Let 2025 be the year to take control, make informed decisions, and move closer to your financial goals.
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