IT'S a topic which resolutely needs both scrutiny and discussion.

For the past 19 years, the annual Women and Retirement Report, produced by Scottish Widows, has always made interesting reading.

But this year's report appraises how those financial and career disadvantages faced by working mothers – frequently called the ‘motherhood penalty’ – can have an enduring impact on women in later life.

This is something that I've witnessed throughout my career, and it bothers me greatly.

According to the report, the gender gap endures, with women today "far more likely to experience worse retirement outcomes than men".

In her introduction, Scottish Widows' managing director, Jackie Leiper, notes: "The gap is also substantial, with many more women likely to fail to achieve even a basic lifestyle in retirement and the average amounts being saved still differ starkly.”

Single mothers - in particular - are less likely to be on track for "the most basic lifestyle in retirement".

A main driver of the gap is that women do substantially more childcare than men, which limits the amount they are able to work over their lifetime and reduces the amount they can save into their pensions.

Divorced women are also less likely to be on track in their retirement preparations and are still likely to be experiencing unfairness in divorce settlements that all too often ignore pension assets.

The findings often make stark and uncomfortable reading – but they certainly strike a chord…

So, what needs to be done?

Financial planners are often thought to be the preserve of high and ultra-high net worth individuals – but that’s patently not the case.

Good financial planners tailor their advice to each client’s individual circumstances and objectives.

It’s essential to avoid a clumsy one-size-fits-all approach.

And I think that the message is simple…

Financial planning must now come to be regarded as the preserve of every woman – and man, for that matter - at those key junctures that we encounter in life.

Financial advisers will make a point of acting in your best interests, and making sure we understand your tolerance to risk before suggesting a course of action.

That means you can be confident you’re making informed financial decisions that align with your long-term objectives.

To conclude, I applaud Scottish Widows for highlighting this issue for women at this point in time – it’s essential that the issues are discussed fully and frankly.

And now that the debate is beginning in earnest, it’s also my residing hope that women will embrace the potential of financial planning to forge their own futures in the most appropriate way.

To read the Women and Retirement Report, produced by Scottish Widows, in its entirety click HERE. 

If Jill Thomas or a member of the Future Life Wealth Management team can help you create your future financial life ring 01246 435996.