Making financial confidence women’s ‘new normal’ in 2021

The pandemic has dealt women a particularly challenging hand when it comes to their finances. For this year’s International Women’s Day, adviser Samantha Kaye is calling for women to reclaim their financial self-esteem.

Women’s wealth worldwide is a force to be reckoned with. 32% of the world’s wealth is already held by women, a figure expected to reach a whopping £93 trillion by 2023! Despite this, females have taken the lion’s share of the negative effects of COVID-19, as you can see from the below statistics.

One reason for this greater effect on women is that the burden of care has been disproportionately carried by women, as they manage resulting family issues as well as consequent professional impact.

The numbers come from a recent report by the WealthiHer Network, a group of change agents who have come together to drive positive change, championing female investors, entrepreneurs and clients and celebrating the diversity of women’s wealth.

Their ‘The Changing Faces of Women’s Wealth’ report looks at how COVID-19 has impacted women and altered their attitudes to wealth, life, business, careers and finances. The report highlights some shocking statistics:

While COVID-19 has affected everyone’s financial outlook and goals, the report found that it has been harder for women, with 62% saying their personal and financial goals have been impacted, with retirement plans changing as a result.

Many women are understandably feeling that the pandemic has reversed decades of progress on equality. For instance, the gender pay gap and gender pensions gap are likely to further widen – which is especially bad news considering in 2019 a report found that women’s pension pots at age 60 were only one third of men’s pensions at the same age.1

Sam Smethers, Chief Executive of the Fawcett Society, said in the WealthiHer report:

“The Fawcett Society estimates it would take 60 years to eradicate the gender pay gap on pre-crisis trends. But given the scale of the economic shock for women currently unfolding, it fears parity could be delayed by decades.”

Female business owners have also been disproportionately impacted by COVID-19. Tamara Gillan, CEO of the WealthiHer Network, commented:

“[Women have] been more negatively impacted as a result of the pandemic, and their self-esteem and financial confidence and security has suffered. At a business and entrepreneurial level, they don’t feel supported, and 74% of female entrepreneurs are concerned about access to funding and bias in the process.”

Rebuilding confidence

Not only have women’s financial plans taken a hit, but perhaps one of the most worrying statistics in the WealthiHer report is that 75% of women said they had ‘low’ or ‘average’ self-esteem.

But it’s not all bad news! With the pandemic leading to women re-evaluating their priorities when it comes to wealth, life, business and careers, the importance of health and family has come to the fore. Indeed, 47% of UK women say wealth, to them, means ‘health and happiness’.

And, while it may not seem like an obvious one, financial security can be an important factor in promoting mental health and well-being. 46% of the women asked identified financial autonomy as a key driver of self-esteem – and this is where taking financial advice comes into its own!

Advice = empowerment

We know that taking advice can inspire women to become financially secure – the International Longevity Centre’s ‘Peace of Mind: Understanding the non-financial value of financial advice’ report, carried out in partnership with St. James’s Place, revealed that women who had taken advice more commonly expressed the view that higher levels of financial literacy made them feel more empowered to make informed decisions.2

As a financial adviser, I’m here to help you take that first step along the road towards financial autonomy and peace of mind. I offer both personal and business advice – whether it’s getting your long-term retirement plans back on track, or giving you the confidence you need to achieve your business ambitions.

This International Women’s Day, let’s show the world what we’re made of!

If you have a question about financial planning or would like more information about our services, please contact Wellesley Wealth Advisory on 01444 244551 or via email at info@wellesleywa.co.uk.

Sources:

Unless otherwise annotated, statistics are quoted from WealthiHer, ‘The Changing Faces of Women’s Wealth’ report, January 2021

1 NOW: Pensions, ‘Facing an Unequal Future – Closing The Gender Pensions Gap’, July 2019

2 ILC, ‘Peace of Mind: Understanding the non-financial value of financial advice’ report, conducted via in-depth interviews with 32 UK individuals in 2020.

About WealthiHer

The WealthiHer Network is a group of change agents who have come together to drive positive change, championing female investors, entrepreneurs and clients and celebrating the diversity of women’s wealth. It includes financial services firms and insurers who are all collaborating to drive the economic advancement of women. The network’s members include Brewin Dolphin, Brown Advisory, Chubb, Federated Hermes, HSBC Private Bank, J.P. Morgan Private Bank, St. James’s Place Wealth Management, and The World Gold Council.

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Author: Samantha Kaye
Author: Samantha KayeAdviser
Samantha.Kaye@sjpp.co.uk

For more information

Wherever you are on your financial journey, it is important that you’re getting the right advice on planning for a secure future.

If you would like more information about my services, please contact me on 01444 849809 or via email at samantha.kaye@sjpp.co.uk.

Author: Samantha Kaye
Author: Samantha KayeAdviser
Samantha.Kaye@sjpp.co.uk