Understanding women's wealth goals: putting your needs first

The financial landscape for women has undergone a significant transformation in recent years. Women are accumulating more wealth than ever, with reports indicating that the trend is set to continue. For example, Statista notes that the percentage of ultra-wealthy women increased from 6.5% in 2016 to 11% in 2022. However, despite this progress, many women remain unprepared for the financial challenges ahead. A 2023 survey by Standard Life found that 64% of women don’t seek financial advice, and many worry about their pension savings lasting through retirement.

So, how can women take charge of their financial future?

Feeling empowered in financial decision-making

If financial decisions have traditionally been left to a male partner or family member, it’s time to take an active role. Whether you’re planning for retirement, investing, or managing inheritance, your financial plan should be shaped by what’s important to you. Seek advice that’s clear, jargon-free, and tailored to your needs. By learning more about your finances in a straightforward way, you can feel confident about making decisions for yourself and your family.

Navigating spouse-to-spouse wealth transfers

Many women are expected to inherit significant wealth over the coming years. According to the Centre for Economics and Business Research (CEBR), by 2025, 60% of the UK’s wealth is expected to be in the hands of women, giving them more financial power than ever before.

If you find yourself in the position of inheriting wealth, it’s essential to take the time to consider the immediate and long-term impacts on your financial life. The loss of a spouse can bring emotional challenges, and managing an inheritance can feel overwhelming. In these moments, it’s important to seek guidance that respects both your emotional and financial needs.

A trusted financial planner can help you understand how to manage your inheritance, whether that means planning for future expenses, investing wisely, or ensuring that your wealth aligns with your personal and family goals. In addition, it’s crucial to think about your own legacy planning—what you want to leave behind for the next generation—and how best to preserve your wealth for the future.

Addressing the unique financial needs of women

Every woman’s financial journey is shaped by different circumstances, but certain challenges tend to affect many women’s wealth-building potential. For example, career breaks to care for children or elderly parents can disrupt a woman’s earning ability and, by extension, her retirement savings. Additionally, women still face a pay gap, meaning that even when they are working, they may not be saving as much for the future as their male counterparts. According to Now Pensions, women retire with average pension savings of £69,000 compared to £205,000 for men.

Women also tend to live longer than men. The Office for National Statistics reports that the average life expectancy for women in the UK is 82.6 years, nearly four years longer than for men. This reality means that women often need to plan for longer retirement periods, higher healthcare costs, and more complex care needs as they age. If you don’t have children or a partner, you may need to take additional steps to ensure your care needs are met in later life.

Using financial tools to plan for life’s changes

To help you navigate these stages and challenges, financial tools like cash flow modelling can be incredibly helpful. These tools illustrate how different life events—such as career breaks, health issues, or longer life expectancy can affect your financial plans. By understanding the potential impact of these factors, you can make better decisions about how to save, invest, and plan for the future.

The importance of tailored financial advice

Your financial journey is uniquely yours, and no two women will face the same set of circumstances. However, by recognising common challenges—whether it’s dealing with caregiving responsibilities or planning for a longer life expectancy—you can map out the future with greater confidence.

Personalised financial advice is the key to making the most of your wealth. Whether you’re navigating inheritance, retirement, or other financial milestones, a tailored plan can ensure that your needs are met and your financial future is secure.

If you’re looking for advice that reflects your unique circumstances reach out to a trusted firm that offers a truly bespoke service, like Carbon. Together we can create a plan that aligns with your values, empowers you to take control, and helps you achieve your financial goals.

So, the message is clear – there has never been a better time for women to take control of their finances to start planning their own financially secure future.

If you would like to speak to us about our bespoke financial planning service, please call us on 0131 220 0000 or email via enquiries@carbonfinancial.co.uk

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action. Tax and Estate Planning Services are not regulated by the Financial Conduct Authority. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.