COVID-19 has impacted very aspect of society. However, some groups have been affected more than others. COVID-19 has disproportionately impacted women’s finances. Women are 1.8 times more likely than men to have lost their job or quit work because of the virus2. This means that it is likely to widen the gender pay gap as more women will be out of work or having to resort to taking low paid temporary roles.
62% of women’s financial plans have been disrupted by COVID-19 compared with 38% of men2.
The closure of schools has stalled many women’s careers as they are having to care for their children and home school them. Many women have had to voluntarily reduce their hours and salaries to manage this. This could lead to significant long-term financial impacts.
By leaving work or cutting hours, women are risking their current and future financial stability. This is because they will no longer receive workplace pension contributions and may also opt to stop paying personal contributions.
Before making any big financial decisions, speaking to a financial adviser at Four Wealth Management could help you to manage your finances.
Women who take financial advice are often more empowered to make informed financial decisions to help them become financially secure. Financial advice can also be a factor in improving mental health and wellbeing.
Whilst we recognise that not all women specifically seek out or want a female financial adviser, we are pleased to say that Four Wealth Management are a Senior Partner Practice of St. James’s Place who have one of the largest networks of female financial advisers in the UK.
How Financial Advice can help women increase their wealth
In September 2020, the ‘Value of Advice’ report from St. James’s Place and consumer financial website Boring Money estimated that financial advice can boost investment returns by 10-30%1.
Without advice you might invest in products or funds that are not suitable for your needs or don’t match your time horizons and attitude to risk.
Research from the International Longevity Centre revealed that on average, financial advice leaves clients over £40,000 better off compared to those who didn’t take advice. 3
1‘Value of Advice’, St. James’s Place and Boring Money, September 2020. Survey of 10,000 UK adults and 2,000 fund investors, with further qualitative interviews carried out with advice users at different life stages.
2 McKinsey, COVID-19 and gender equality: Countering the regressive effects, July 2020
3 International Longevity Centre, 2017