.png)
As we celebrate International Women’s Day, there is no doubt gender equality has improved. We are a little over 100 years since Ivy Williams became the First woman called to the Bar of England and Wales in 1922, and Helena Normanton, became the first woman to practice and we celebrate 50 years since women were permitted to open bank accounts in their own right following the 1975 Sex Discrimination Act. As we look to the present day, women in the UK have full financial Freedom and with it, power and opportunity to achieve their goals. Yet, in the Bar Council’s recent research, it was reported “women’s median earnings are 13% behind men’s”(1) in the early years of practice. As such, women must ensure they are taking action, in an effort to bridge this gap. Below we explore, the key areas of financial planning you should be addressing on this venture:
Financial Protection
The foundations of your financial plan, taking effect when the unexpected occurs, to keep yours and your families’ plans on track. With a “41% chance of a woman being unable to work for two months”(2) and as a barrister, self-employed, without any sick pay, this highlights how likely you are during your lifetime to need to rely on such a product. Yet, only 11% of women hold or are applying for Income Protection(3), despite it potentially costing no more than a daily cup of coffee. Do you have a protection gap, and what’s your plan B?
Investments
Whilst men might have more capital to work with, and are more numerous investors, women have been found to be more successful – why? Because we think long-term, trade less frequently and avoid riskier investments(4). So why aren’t we using our instinctive investment skills more to our advantage? The root of the problem is we are overweighted in cash. Whilst there is, and always will be, a place for cash-based accounts in our financial plan, we aren’t using investments when appropriate to do so. Are you following a correct model for managing your cash and investments, and using tax-efficient products where suitable?
Pensions
By retirement, the average woman’s pension pot is half the size of a man’s(5). Whether this is due to saving less, different investment strategies, or career breaks, it presents us with a problem, insofar as we need the same amount of money to have a comfortable retirement, currently estimated to cost a single person circa £43,100 a year(6). Although we might consider pensions as an afterthought during our working lives, that is more of a concern for our future selves, there are at least 3 reasons why we should start saving now:
Inheritance Tax (IHT) Planning
Inheritance Tax receipts for April to December 2024 were £6.3billion(1). Having worked hard throughout your life, do you really want to potentially leave more to HMRC than to your chosen beneficiaries? Especially when it is a voluntary tax and with careful planning can be mitigated. With women still behind men at the Bar on an earnings basis, but with the opportunity to pass the wealth we have accumulated onto our children, why wouldn’t you want to give your beneficiaries the best possible start in life and help further bridge that gap across generations.
The value of Advice
When you work with an adviser, we review your financial circumstances, needs and objectives as a whole, we ensure that where there are gaps in your financial protection these are addressed; we work with you on building a bespoke model for investments and cash savings, that fits your needs and ensures your assets are appropriately diversified, giving them the best possible chance to grow your wealth. We get you building good habits with pension savings and make sure you are within your allowances and benefit from tax relief available to you; and we constantly monitor your estate, identifying where an IHT liability has arisen, then working with you on the best means to address this, through appropriate trusts; investments and protection solutions.
So take action and scan the QR code or use the details below to book a 30-minute initial consultation. Together we can begin to bridge the financial planning gender gap at the Bar, by
Tel: 01962 353153
Email: enquiries-westgate@sjpp.co.uk
Web: www.westgatewealth.co.uk/specialist-advice/the-bar
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. SJP does not offer a cash ISA.
References:
(1) The Bar Council ‘Mind the early gender earnings gap at the Bar – new research from the Bar Council,’ 23 April 2024, accessed February 2025
(2) Figures from LV= Risk Reality Calculator, based on a 40-year-old, non-smoking woman retiring at age 68, accessed February 2025
(3) The Exeter, Health and Financial Fears research 2023’r, “A Gender Savings Gap”, October 2023, accessed February 2025
(4) Warwick Business School, Are women better investors than men?, June 2018
(5) Legal and General, Gender Pension Gap, April 2024
(6) The Pensions and Lifetime Savings Association/Loughborough University Retirement Living Standards, accessed February 2025
(7) www.gov.uk accessed February 2025
Westgate Wealth Management Limited is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group's wealth management products and services, more details of which are set out on the group's website www.sjp.co.uk/products. The St. James's Place Partnership and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.
SJP Approved 10/02/2025
