Women need financial knowledge and confidence to be ready for the great wealth transfer that is in process.
For women, managing money is not generally on the priority list. We make sure our houses are looked after, work is completed, children are cared for, and if we have some energy left, a social life is maintained.
But how often do we sit down and look at where we are financially?
Various reports recently have demonstrated this is a research piece around financial wellbeing, and how women in particular are being left behind when planning for their future self.
Women take on so much more of the “mental load” of life, that thinking about a pension or retirement has no time to
be factored in.
The suggestion is that she simply does not have the capacity to think about what she wants. And women in The Female Money Doctor community agree with this.
Research by Aegon earlier this year stated that only 28 per cent of people had a vague sense of what gave them joy or purpose, and 87 per cent of the UK population did not have a financial plan to achieve long-term goals.
So how can women know what next steps to take if they don’t even know what they want?
This is concerning given that the Centre for Economic and Business Research says 60 per cent of UK wealth will be in women's hands by 2023.
Without the knowledge and confidence of what to do with this wealth, there is a risk of many women feeling overwhelmed and stuck in “analysis paralysis” over what to do to preserve it.
I encourage the women in my community to think about what they want for the future, and put a cost onto it. This enables them to work out how much they need in retirement, and this can help flesh out the steps to take next.
But this involves having regular “money dates” to check in on the direction their money is taking. Are they on track for what she is aiming for?
It’s important in a partnership to do this as well, because being on the same page as your spouse when planning for a future together is so important.
I also encourage self-education around the topic of money. Read or listen to books, follow blogs and podcasts, take part in courses or personal coaching – whatever works to help gain skills and confidence in what to do next, particularly if she is thinking of consulting a financial planner or adviser, as it can be an intimidating step to take.
When an adviser reaches out to a woman to help coach her in what to do with her money, the first thing is to realise the mental load she is under.