Pension tips for women: take charge of your financial future
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of Standard Life offers financial advice for women to ensure that their pension delivers the best possible retirement
Women in Ireland are more active in the workforce than ever before, and with this comes an opportunity for them to better secure their financial future through retirement planning.
The reality is that many women still lag behind when it comes to planning their pensions and long-term financial security. This shortfall can have significant implications, affecting both financial and emotional readiness for retirement.
Recent research by pension provider and retirement specialists, Standard Life highlights a concerning trend: more than half (55%) of women do not have a pension, whether through a private, personal, or company scheme.
Adding to the challenge, 2 in 5 (44%) of women feel uncomfortable talking about money with friends or family. Consequently, 2 in 5 are also concerned they won’t be able to retire. These statistics emphasise the urgent need for women to focus on their pensions and to take steps toward securing their long-term financial wellbeing today.
Here are five tips to guide you on your pension journey.
One of the first steps toward taking control of your pension is acknowledging the specific challenges that women often face in their careers. Women’s professional paths are generally less linear than men’s, often marked by breaks or shifts due to family responsibilities. Childcare, caring for elderly parents, or even part-time work during critical career years often result in reduced contributions to pension funds.
Additionally, women tend to live longer than men, meaning they’ll need their retirement savings to last longer. Yet, these savings are often smaller due to career breaks or lower lifetime earnings. Understanding these challenges is key to planning effectively for retirement.
One common misconception is that if you haven't already started saving for a pension, it's too late to begin. Whether you are in your 20s, 40s, or even approaching retirement age, it’s important to understand that it’s never too early or too late to start planning for the future.
Rather than dwelling on missed opportunities or regretting past decisions, it is important to seize the present. Reach out to a financial adviser, review any pension arrangements you already have, and consider your options for improving your financial situation. The earlier you start, the more time your money has to grow.
Many women are consistent savers, but not all understand the full potential of pensions as a tax-efficient savings method. In fact, pensions are one of the most beneficial ways to save for the long term because of the tax relief associated with contributions. Unfortunately, many women are not confident they’re maximising these contributions, potentially leaving substantial financial benefits on the table.
When you contribute to a pension, depending on your tax bracket, the government essentially adds to your savings by reducing the amount of tax you pay. For example, every €100 you contribute to your pension might only cost you €60 or €80, depending on your income tax rate. This tax relief is a powerful tool that allows your pension contributions to grow faster than other forms of savings.
We often seek expert advice when it comes to important decisions in other areas of life. We visit doctors for health concerns, hire mechanics to fix our cars, and consult stylists for haircuts. Yet, when it comes to finances, many of us hesitate to seek professional guidance. When planning for retirement, a knowledgeable financial adviser can be your most valuable ally.
A good adviser will help you navigate the complexities of pension schemes, explain your options in plain language, and help you tailor a retirement plan that suits your individual circumstances. Financial advisers can also coach you through important decisions, like how much to contribute and when to adjust your savings strategies as life changes. By having an adviser in your corner, you can ensure that your financial plans stay on track for the long haul, giving you the confidence to face the future.
If you’re looking for practical advice and a deeper understanding of pensions tailored specifically for women, Standard Life’s podcast series The Ultimate Guide for Women and Pensions is an excellent resource. Hosted by fashion designer and entrepreneur Sonya Lennon, this podcast offers insightful, motivational, and actionable guidance.
Reflecting on the series, Lennon says: “Hosting the 'The Ultimate Guide for Women and Pensions' podcast series feels really important, it taps into my passion to unlock women’s financial potential and security. If our listeners learn as much as I did making them, I know it will make a real difference in helping more women have meaningful conversations about their financial futures.”
Across four educational and entertaining episodes, the podcast features personal stories, and expert advice designed to help women of all ages feel empowered to take control of their pensions. Whether you're just getting started with retirement planning, have been avoiding the topic, or are already working toward your financial goals, this podcast offers valuable insights to keep you moving forward.
Podcasts like these are not only informative but also provide a fantastic way to start important conversations with friends, family, or even your book club about planning for retirement. The episodes are readily available on popular platforms like Spotify and Apple Podcasts, so you can listen at your convenience.