Planning for the Future

Yasmine, who is a Partner at the think-tank New Financial LLP, was leading a Life Advice session for the U5 on planning their finances for the future. “Is there anything that sounds more boring?” she asked before setting out how important it is and the power of starting to save now.

She asked the students to share what – if anything – they were saving up for now.  Answers ranged from new shoes, tickets to see Lizzo, a holiday and a replacement for a cracked phone screen.

“It’s hard for you to imagine what life will be like when you’re 70 right now,” said Yasmine.  “But try and think what you’ll live on in your 70s if you don’t start saving for your pension now.”

She added: “I left LEH thinking that women rule the world, but sadly there are still very clear differences between what men and women typically earn and how they handle money.”

The statistics speak for themselves:-

• Women currently earn, on average, 15% less compared to their male counterparts.
• The pay differential could contribute to a reduction of pension wealth of 28% for those approaching retirement.
• 38% of women in employment were working part-time at the end of 2021, compared to just13% of men.
• Of the three million single parent families with dependent children, 90% are single mums, accounting for 22% of families.
• 55% of men checked how their investments were doing, but only 33% of women did so.
• Last year, 28%, more than a quarter of young adults aged 20 to 34, were living with their parents.

“Hopefully these things will change and improve, but it’s important to understand how things are now,” said Yasmine. “Equal opportunities keep progressing, and will continue to do so, but sadly the default remains very much around a man who works full time all his life.”

She said: “I never thought about these things until I was over 40 and now I wish I’d thought about it earlier so I could have set aside the money. Ideally you should be putting away 20% of your income to ensure you have sufficient resources for a comfortable retirement.

“I’m not saying go out and make loads of money, but it is important to think about the money you do have and what you might need it for in the future. There are loads of great apps that can help you with savings without you having to think about it.  Take control of your money now and get it working for you.”