The following blog post is written by Collette Steele, Infinity Financial Planning Ltd.
Statistically, women will outlive their spouses but will typically have a lower lifetime income. In addition to this, women either will or are caregivers to parents, children and spouses. These factors can have significant financial planning consequences for households.
Single/Separated/Divorced/Widowed women have a greater financial planning need than the average single man or couple. Why? This is due to longevity. Women statistically live longer than men but will typically have less money to do so. Therefore an average woman should have a bigger pension fund than the average man.
Here are some important points to consider:
Divorced or otherwise, in the short term, day to day budget and expenses will need to be adjusted. Titles on assets may need to be changed as well as possibly the beneficiaries in your will. Any lump sums received from a divorce settlement will need to be managed carefully. Overall, the financial needs of a divorcee are completely different to those of a married couple. While this is an extremely difficult and stressful time, availing of the services and experience of a qualified financial planner will ease financial pressures sign.
It is never too early to prepare for your financial future. The first step is to meet a qualified and reputable financial planner who will undertake a complete financial health check, analysing your current situation and identifying where you want to be. By doing this, you are significantly reducing your longevity risk.
The best time to start financial planning is now. By analysing your current position, together we can devise a plan to achieve short, medium and long term goals. This will reduce your financial stress and put you in control of your finances, no matter what the future holds.