Women at risk of ‘financial meltdown’

New research conducted by Royal London shows that many women of all ages are yet to take responsibility for their own finances and financial planning, leaving them at risk of ‘financial meltdown’.

Significant numbers of older women also disclosed that they are relying on the pension rights of a spouse or partner and therefore this study highlights the fact that they could face financial difficulties in the event of their relationship breaking down due to their lack of financial plans and individual pension rights.

According to the YouGov survey (specially commissioned by Royal London), 45% of women living with a partner said they were either not confident or did not know if their long-term financial plans would be adequate if their relationship failed.  Only 34% of men felt the same way.

While initiatives such as auto-enrolment have boosted the number of women saving into a pension, the data shows little evidence that women are increasingly taking responsibility for their own long-term planning.

Only 38% of 18 to 34 year old women living with a partner said they were either very or reasonably confident in their long-term planning compared to 58% of men living with a partner in the same age group. Worryingly, 30% of these women aged between 18 and 34 said they haven’t made any long-term plans compared to just 12% of men.

In conclusion, it is therefore imperative for women (and everyone for that matter) to take control of their finances and plan for their financial futures.

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Written by Kay Crooke – Associate Practice Director at Prosser Knowles Associates Limited.