While gender roles and gender equality are still evolving, those of us in our thirties, forties and beyond can appreciate just how far we’ve come in the last three to four decades.
To put it into concrete terms, there was a marriage bar in place until 1973, which required female civil servants to resign from their job when they married and banned married women from joining the permanent civil service.
As this was only 50 years ago, many women today are still feeling the effects of the bar and an entire generation of working women remember their mothers in the same situation.
“Looking after your financial future is not just ‘thinking of yourself’...you are thinking of your loved ones”
Now, women are juggling careers, families, households and relationships – but those systemic issues of the past are still creating gender gaps in certain areas, including investing and wealth accumulation.
“We haven’t necessarily seen our grandmothers, or even our mothers, as trailblazers when it comes to investing,” Fiona Haughey, Financial Planning Manager, Davy, said. ”But things are different now and there’s an onus on women to take control and to take ownership of their financial future.“
A report entitled ‘Better Serving the Financial Planning and Investment Needs of Women in Ireland’, which was commissioned by Davy in 2021, revealed that although women lead on day-to-day banking and household saving and are as likely as men to have essential banking products and pension funds, women are 30 per cent less likely to have investment portfolios. In addition, men are 30 per cent more likely to be the household decision maker in relation to investments.
In the report, 90 per cent of women said they are involved in decision making in relation to day-to-day banking and 85 per cent with regular household savings. Women were also found to be more motivated by security and the everyday, with 41 per cent of women versus 29 per cent of men wanting to be mortgage free as soon as possible, and 81 per cent of women vs 73 per cent of men wanting a comfortable lifestyle that allows them to enjoy their passions and pastimes.
According to the report, in reality many women feel trapped in the day-to-day and de-prioritise their own needs. They put their time and energy into the responsibilities of family and work, and as a result feel they don’t have the energy or capacity to give any more. As a result, 53 per cent of women vs 71 per cent of men say they are satisfied with their personal financial situation.
So how can women better prioritise their own wealth-building while balancing their career, their family and their financial goals? The key is to take control and be proactive with savings and investments – and to seek advice and support from a professional financial planner. Here’s where to start:
Find a plan that fits with your life
A financial plan is essential when taking control of your finances. A financial planner can help you clarify your goals, determine the best ways to achieve them, and understand any necessary trade-offs.
Our financial needs and goals are unique to us and evolve over time, so bear in mind that your financial plan is not set in stone, but is expected to change as your circumstances change. A financial planner understands this, and builds this into a flexible plan with you.
“Getting a structured financial plan down on paper is hugely beneficial as you feel more in control and this gives you a lot of peace of mind,” Haughey said.
“At Davy, we go through a plan of action – what you need to save, what you need to invest and how to invest to reach your goals. This plan should be regularly reviewed, particularly if there’s a change in circumstances. At Davy, regular reviews are part of our relationship management.”
Involve your family in your financial planning
Naturally, drawing up a financial plan affects your loved ones. For instance, you might be looking to provide for children as they grow up, or you might be thinking about what will happen financially, should something happen to you or your partner, or you could be at the point of your life where you’re considering the next generation and estate planning.
Haughey favours a holistic approach to financial planning, taking in every part of a client’s life; so whether you’re a man or a woman, it’s important to involve your spouse or partner in this process.
“For couples, having a professional adviser in the room when you’re having those conversations is very beneficial,” Haughey said, adding, “for partners or couples, there are three parties – you, me and us – so trying to work out individual goals and shared goals, and allocation of capital to those goals, really benefits from having that objective adviser in the room.
“Everyone has their blind spots, and having that objective view can give clarity and help the person or couple find the best solution for them.”
Take time to understand risk
As you accumulate wealth, it’s important to make sure you are making the most of your savings. Maximising your pension contributions is the most efficient way of making your money work for you thanks to the tax breaks; but learning about investing is vital too.
We need to ensure that we understand how our pension is invested and have the knowledge and confidence to pivot investment strategies if required.
A financial planner can help you with investment advice based on your goals – whether they are short term or long term. Assessing the importance of each goal is important too, and this will feed into your tolerance for risk.
For instance, shorter-term goals such as saving for children’s education costs may require a lower-risk approach whereas a longer-term goal such as saving for retirement could suit a higher-risk approach.
“Women are generally more careful about making decisions – but that’s not to say they won’t go into higher-risk investments, they just need to know that this is right for them,” Haughey said.
“It’s important that we explain, educate and inform clients on the level of risk they are prepared to take, the risk that they might need to take and the risk that makes sense to take.”
In other words, this is a balancing act and one that is based on your own unique goals, your ever-changing circumstances and your approach to your money.
Stay in control and free your mind
While this might seem like yet another part of your everyday juggling act, the effect of taking control of your finances is powerful, and it takes a load off your shoulders.
Taking the first step quite often is the hardest part, but it doesn’t have to cause stress, and once you do take control, it can create security and peace of mind. It is an important part of your own life, and has a positive effect on those you love.
A financial planner can make it easier for you, helping you identify your goals, formulate your financial plan and finally feel in control of your financial future – there is nothing more empowering.
“Looking after your financial future is not just ‘thinking of yourself’,” Haughey said. “You are thinking of your loved ones, you are caring for their future. By considering a critical illness or life policy, should anything happen to you, then you have the peace of mind to know that your family will be cared for.”
Davy is Ireland’s leading provider of wealth management and investment banking services, connecting capital with opportunity for almost 100 years.
Since its beginning in 1926, Davy has established itself as a leader in the financial advisory sector in Ireland, providing a broad range of services to private clients, small businesses, corporations, and institutional investors.
It has offices in Dublin, Cork, Galway, Belfast and London, and employs over 900 people. Davy is a member of the Bank of Ireland Group.
Book a consultation with a Davy adviser today.
J & E Davy Unlimited Company, trading as Davy and Davy Private Clients, Davy Capital Markets, Davy Select, Davy Institutional Consulting, is regulated by the Central Bank of Ireland. Davy is a Davy Group company and also a member of the Bank of Ireland Group.