Women’s wealth makes up around 32% of the world’s wealth, a figure that is expected to reach £93 trillion by 2023. * Despite this impact, the Coronavirus’ negative impacts, from school closures and job losses to furlough schemes and inequality, have hit this percentage of workers finances hard.
COVID-19 has affected everyone’s financial outlook and goals; however, reports show that it seems to have been harder in areas for women, with many feeling it has potentially reversed decades of progress on inequality.
A recent report shows that 54% of women have lost their job during the pandemic, with women being more likely to work in the worst affected areas like retail and hospitality. ** Even if they maintained their job during lockdown, many working mothers were faced with tough decisions regarding the juggling of childcare, working and home-schooling.
When facing the choice of a full-time high paid role, and a part-time or lower paid position, it is likely the lower income will be sacrificed in a family dynamic. This often falls to the woman, partly due to the gender pay gap, and partly as they are more likely to work part-time than men. ***
To this end, 62% of women have felt less financially secure since the crisis began. **** Financial security can be such an important factor in providing mental health and well-being, a key driver in self-esteem.
However, many women have been forced to adjust their personal and financial goals to accommodate the current climate. Less money being bought in due to job losses or reduced hours could have led to a reduction in savings or pensions. In some cases, older women have been forced to change their retirement plans, retire earlier, or even keep working for longer than planned to afford to be able to quit. **
Women on average live longer than men, so may need more to cover their retirement, however due to lower pay and career breaks, women can find they reach their retirement with smaller pension pots than men. ** Therefore, paying even a small amount into a pension every month could therefore make a big difference, come retirement.
Coronavirus has had a huge effect on women, but there are ways to lessen the financial damage:
- Build financial resilience by pulling together some emergency savings
- Improve your financial future by increasing pension payments, and take advantage of tax relief. If your employer offers a pension, you will get employer contributions too.
- Even if you are not working, you can pay £2,880 a year into a pension and the government will top it up to £3,600 (thanks to tax relief).
- Make your money work harder, by switching from saving to investing.
- If family income has dropped due to COVID, check if you qualify for anything extra.
- See if you are able to Claim Child Benefit payments where the highest earner brings in £60,000 a year or less.
- If you’re a low earner or self-employed it’s even more important to put aside some money each month however small, for retirement. The benefits of compounding could help turn a small pot into a sizable amount over the long-term
This content is published and provided for informational purposes only. The information contained within constitutes the author’s own opinions. i-stock is a trading style of Tavistock Wealth Limited which is authorised and regulated by the Financial Conduct Authority, FCA No: 568089. Tavistock Wealth do not provide ﬁnancial advice. Registered Office: 1 Bracknell Beeches, Old Bracknell Lane, Bracknell RG12 7BW, Company Number 07805960. Tavistock Wealth Limited is a wholly owned subsidiary of Tavistock Investments Plc. None of the information contained in the document constitutes a recommendation that any particular investment strategy is suitable for any speciﬁc person. Source of data: Lovemoney.com, tfagroup.co.uk, Tavistock Wealth Limited unless otherwise stated.