A few years ago, the idea of a prime-time TV documentary about the menopause was unimaginable. It was something our mothers silently suffered through. Now, thanks to Davina McCall, we’re more open about how the perimenopause & menopause affect us. Gen X women aren’t keeping quiet about how they are feeling.
If you’re a woman in your late 40’s it might feel like every conversation is about the perimenopause. Your social media feed is probably awash with information about the physical and emotional impacts you might feel, but the financial implications of the menopause remain overlooked. All that collagen and ashwagandha costs money.
Understanding the financial challenge
The gender pay gap and career interruptions can mean we can get to our late 40’s with a lower level of savings, investments and pensions as our male peers. Then perimenopause hits us as we reach our key earning years.
Research from AJ Bell’s Money Matters campaign, suggests that roughly one in 25 women reduce their working hours due to menopause, and one in 20 stops working altogether.
Clearly there is much to be done to make working environments better suited to women’s needs, but taking control of your own finances will give you more options during this phase of life.
How should we plan for this?
When I’m helping clients in their 30s & 40’s build a financial plan, I talk about the need for three pots of money.
The short term and long term pots are simple. Your short term needs are covered by cash savings and your long term pot is your pension. But there’s also a less distinct medium term pot. You might not have a goal for this right now, but you don’t want it sitting in cash earning nothing and you don’t want it locked away until 57.
For women, this medium term pre-retirement ISA fund is so important. This is the money that’s going to give you more choices as you go through the perimenopause years.
If you’re money has been working hard prior to hitting your late 40s’, you’ll be able to deal with a reduction in income if you need to change how you are working or take some time off.
How can EQ help?
At EQ, we specialise in crafting comprehensive financial plans tailored to your unique circumstances and goals.
We’ll take a close look at your current financial position to uncover opportunities and identify any gaps in your planning.
Get in touch today to find out how we can help you build a secure and prosperous financial future.
Please remember, this content is provided for information purposes only. Investment involves risk. Past performance is not a guarantee or indication of future results. Investment return and the principal value of an investment may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, to determine the risks associated with the investment and its suitability.
