3 simple ways women can improve their financial plans in 2025
Women still face inequalities where finance is concerned – but there are simple steps that could help you achieve financial freedom. Read 3 of these steps here.
In 2024, the first ever female chancellor of the exchequer delivered the Autumn Budget to Parliament, marking a historic moment for women’s financial liberation. For the first time in Britain’s long history, a woman is making the rules where money is concerned.
But for the everyday woman, there are still inequalities that can make it harder to achieve all-important goals, be it retiring comfortably, passing wealth to the next generation, or simply achieving financial freedom.
We’ve previously published insights into specific topics affecting women today, including the gender protection gap, and pension inequalities that can arise during divorce. In truth, there are a broad range of areas in which women could strive to improve their situation despite systemic issues that may make it harder to meet key objectives.
So, as 2025 approaches, read three ways women could revitalise their financial plans in the new year.
1. Pay close attention to your pension
Our previous insights talked about how divorce can exacerbate pension inequality and make it harder for women to retire comfortably. However, pension inequality exists for women of all ages, and for married women as well as single, widowed, or divorced women.
The Scottish Widows Women and Retirement Report 2023 says that on average, women contribute less into their pensions than their male peers at every life stage. They also receive less State Pension on the whole and have less built up in the form of other savings and investments. Women today are projected to have assets equalling £148,000 when they retire, compared to their male peers, who are set to have £234,000. The gender pay gap, childcare responsibilities, and divorce are all key contributors to this gap.
So, paying attention to your pension – no matter your life stage or circumstances – is essential.
If you’re employed, you could start by talking to your employer about increasing your monthly contributions. Your employer might match your increase. If you’re self-employed, you can do this manually.
Another useful tip is to track down any lost or forgotten pension pots, as this could add valuable wealth to your existing retirement fund. Find out how to do this in our recent blog, where we delve into this topic further.
All in all, paying closer attention to your pension could help you maximise the amount you save for retirement while enabling you to maintain your existing quality of life.
2. Start investing, even if it scares you
According to a report from NatWest, only 40% of UK investors are women.
Although there is no concrete reason why this might be, some research suggests that women are typically more risk-averse where money is concerned, leading to the limiting belief that investing is “not worth it”.
Of course, most investments carry a degree of risk, and it’s vital to be aware of this before you invest your hard-earned wealth. But if you’re a woman who has typically stuck to cash for fear of capital losses, you could be leaving your wealth vulnerable to another, often unspoken risk: inflation.
As we’ve discussed in another in-depth article, inflation can erode the spending power of your wealth over time. Each year, you’re likely to pay a little more for the same goods and services, meaning that if your cash fund doesn’t receive interest payments in line with (or exceeding) inflation over the long-term, the real-terms value of your money may fall.
Whereas, although the value of your investments may rise and fall in the short-term, building a portfolio over the long term could help you grow your wealth and reach your goals. You can read more about why staying calm during market volatility, and remaining invested anyway, may help you achieve financial freedom.
So, in 2025, you could revitalise your financial plan by starting your investing journey – even if you’re someone who has typically avoided this avenue in the past.
3. Attach goals to your financial habits
Sometimes, it’s our mindset and behaviour that can improve our situation even more tangibly than material changes.
If you have previously set resolutions and goals that wear off after a few weeks or months, it could be that you’re struggling to commit to your long-term financial health. If this sounds familiar, you’re not alone – according to Resolution Clinic, most people give up their new year resolutions less than a month into the year.
This issue could afflict women in particular. If you’re feeling worried or stressed about your short-, medium-, or long-term financial objectives – be it buying a new home, retiring, or simply saving more – you might be more likely to give up altogether if you feel the situation is “hopeless”.
That’s where attaching goals to your habits could help. Forming a habit for habit’s sake can be difficult, but with a specific, tangible outcome attached to this habit, you could be held accountable for your financial behaviours and consequently be more likely to stick to them.
For instance, if you’re saving for the long term (such as retirement) while also putting money away for short-term goals like a luxury holiday, you could try separating these savings or investments into different “pots”. Seeing your separate funds tick closer to their specific purpose each month or year could be deeply satisfying, helping you to avoid the slump that can occur after the new year excitement is over.
Work with us at Kellands
Although certain financial issues affect many or most women, you’re an individual. While there are broad measures you can take to shape up your personal financial plan, working with a financial planner could ensure all your actions are lined up with your future goals and ongoing wellbeing.Whether you want to spend more time with your family, set a retirement date, travel the world, adjust to a major life event such as divorce or bereavement, or anything else, we’re here to support you. Offering bespoke, independent advice, we can create a financial plan suited to you and your circumstances.
Email us at hale@kelland.co.uk, or call 0161 929 8838.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.