As the holiday season approaches, many of us are caught up in the whirlwind of festivities, family gatherings, and gift-giving. However, this time of year also offers a unique opportunity for reflection and planning – especially when it comes to our own financial security and retirement planning. For women, who are often the ones holding families together, what will happen in the future when the family spreads their wings and you are on your own? Often facing distinct challenges in securing your financial futures? Take time during those quiet moments during the holiday period to give yourself love and respect by thinking about your future financial security – and if you haven’t started investing yet, don’t put it off for another year.
The Unique Financial Challenges Women Face
Despite significant strides in equality, women still encounter hurdles that impact their ability to save for retirement. On average, women have about 30% less saved for retirement compared to men. This disparity is partly due to factors such as the gender pay gap, career breaks, and longer life expectancies, but it is also due to a lack of confidence with only 18% of working women feeling very confident about their ability to be able to enjoy a comfortably future retirement.
There is a basic rule of thumb to check if you are on track
Add the Miller Rule image here that Nick created for social media
Why the Holidays Are a Perfect Time to Plan
As you take a break from your usual routines, see family and discussion future plans, think about long-term goals. Use the opportunity to discuss financial planning with family members. These conversations can be awkward but putting then off – whether its grandparents putting money into your kids JISAs, planning to minimise inheritance tax, making sure you and any partner have used your annual ISA allowances – the more time you’re invested in the market, the more you can grow your wealth.
And as you consider your New Year resolutions for 2025, incorporating financial goals can set a positive tone for your future financial empowerment.
Nick to do a graphic –
Retirement Enhancing Wishlist
- Start Early and Save Consistently
The power of compounding means that even small amounts saved early can grow significantly over time. If you haven’t started saving yet, now is the perfect time to begin.
2. Educate Yourself
Take advantage of our online resources – understanding investment options and retirement accounts can empower you to make informed decisions.
3. Diversify Your Investments
Diversification is crucial in managing risk. By spreading your investments across different asset classes as we do in all our MoneyShe Portfolios we aim to reduce risk and increase consistent returns
Real Returns Are the Real Target
The world is becoming increasingly volatile and unpredictable which affects markets and economic outlooks. Focusing on real returns (returns adjusted for inflation) are crucial for securing stable investment growth. According to a November 2024 Bank of England/Ipsos Inflation Attitudes survey, inflation expectations have risen, with respondents forecasting a median inflation rate of 3% over the coming year, up from 2.7% three months prior.
So, when you are looking at what you would be getting from your investments in terms of real wealth growth, you need to take away the total fees and inflation.
See the two scenarios below: Nick to do a table of the following
Investing with MoneyShe Charging 0.92%
Investment return of 7%
Inflation 3%
Total Cost of Investing 0.92%
You would be getting 3.08% real returns in terms of your wealth growing
Investing with a Typical Wealth Manager Charging 2%
Investment return of 7%
Inflation 3%
Total Cost of Investing 2%
You would be getting 2% real returns in terms of your wealth growing
You can see how even a small difference can make a huge difference. You can use our Fee Calculator here to look at different scenarios.
Building Confidence in Financial Decisions
One significant barrier women face is a lack of confidence in making investment decisions. That is why we launched MoneyShe and why we are excited with the activities, events and programmes we are building for 2025 to help women build their confidence and access the financial future you deserve.
By dedicating time during these holidays to focus on your future, and taking action by opening an investment account, you will be gifting your future self the precious gift of financial security and peace of mind – a future free from financial worry and full of possibilities.
