New findings lift the lid on financial abuse… but there are ways you can regain control of your money. Here’s our top tips for taking care of your finances.
Almost one million women in the UK are trapped in a relationship due to a lack of financial independence, according to research from the charity Surviving Economic Abuse. One in seven women has suffered economic abuse from a current or former partner in the last 12 months, according to the charity.
Research conducted by the website MoneyShe shows that 43% of women are not confident about making investment decisions, almost a quarter say they lack knowledge about investment options, and more than 75% are not confident they’ll be able to afford a comfortable life in retirement.
These findings underscore how critical financial independence is for women’s safety, security and freedom.
Financial abuse
It’s not just women in abusive or controlling relationships who are vulnerable, either. According to a Global Women and Money Study published in 2021, some 58% of women are likely to defer the management of long-term financial decisions to their spouse, while just 34% of women in the UK felt confident about their financial situation. But it doesn’t have to be this way.
‘It’s hugely important for women to seek independent financial advice – even if they are reluctant to do so,’ urges our founder and managing director, Monica Bradley. ‘Many women don’t know where to start regarding who to talk to and how to find somebody they trust. Still, it’s essential that women talk to a financial adviser because they may have had a career break, or there might have been some years where they weren’t contributing to the state pension or their pensions. It’s also important to look at your investments and be in control of where your money is invested. Seek advice and look for an investment adviser to help you.’
Here are Monica’s top tips on how to regain control of your finances:
Look at your budget
Look at where your money is going every month and understand what you’re paying. Review your bank statements for the last three months and determine where you spend money. Cut back where you can and ask yourself how essential the item is before buying anything. Be honest with yourself. Do you need it or want it to make you feel better? If you want to buy something, wait for a while and give yourself time to consider whether you want or need it.
Find out what you’ll get when you retire
Do you have any frozen pensions for companies you’ve worked for in the past? Have you got any investments you’ve left stagnant and overlooked where those funds are invested? Find out if you’re on track with your pension sum for when you retire, and if not, seek advice. Check for any lost pensions from previous employers that may have slipped your mind or one you may have lost track of using the government’s free pension tracing service.
Seek bespoke advice
If you separate from a long-term partner in later life, you might feel at a loss as to how you’ll manage or worry you won’t be able to get a mortgage. However, many mortgage products are on the market for older borrowers, so try not to let fear dictate your life choices. These days, more people are separating later, and there are options – it isn’t necessarily all down to income. Banks will look at different ways of assessing affordability, such as pensions and investments, so talk to an adviser.
Don’t assume you’re too old to sort things out
Monica says: ‘I often talk to older people who think they won’t be able to get a mortgage, but this isn’t necessarily the case. Lenders are more flexible these days as they know things have changed. People don’t just want a mortgage in their 20s now – they can be needed at any age, and lenders try to consider this. We’re here to offer bespoke advice.’