I read an article in The Irish Times this week with the heading ‘Women more than twice as likely to rely on State pension’ which lead me to think about our clients and how are the women of Co Clare faring.
Firstly let’s look at what the data says nationwide – women are more than twice as likely as men to rely heavily on the State pension for their income in retirement, according to a new survey. And three-quarters of those responding to the study by the Retirement Planning Council of Ireland agreed that women have historically faced financial discrimination when it comes to pensions. Half attribute that to the focus on woman for the provision of unpaid care to children and other family members, while 35 per cent think it is due to women being more likely to have low-paid or part-time jobs.
Personal finance is a topic that many people find daunting, boring or confusing, especially in times of economic uncertainty. However, it is also a topic that can have a huge impact on your quality of life, your goals and your future. In this article, we will explore some of the unique challenges and opportunities that Irish women face when it comes to managing their money, and offer some tips and resources to help you improve your financial literacy and confidence.

Challenges for Irish Women in Personal Finance

• Gender pay gap: In Ireland, less than a third of women over 55 have a private pension. What’s more, those women that do have a pension have, on average, €120,000 less in their retirement fund than men. This gap exists because women earn less than men on average, and your pension contributions are closely linked to your salary. Many women also juggle multiple roles and take career breaks to raise children or care for family members. PwC Ireland published a Gender Pay Gap Analysis in December 2022 that revealed a mean gender pay gap of 12.6% across Irish organisations. This gap can affect women’s ability to save, invest and plan for retirement.
• Care-giving responsibilities: Women are more likely to take time off work or reduce their hours to care for children, elderly relatives or other dependents. This can affect their income, career progression and pension entitlements. For example, a woman who takes a five-year career break to raise children could lose up to €100,000 in earnings and €200,000 in pension savings over her lifetime.
• Financial education: Women are less likely to receive formal financial education than men, and may have less exposure to financial topics in their family or social circles. This can affect their financial knowledge, skills and confidence. For example, a study by Standard Life found that only 22% of Irish women felt confident about investing, compared to 44% of men.
• Financial exclusion: Women are more likely to face barriers to accessing financial services and products, such as bank accounts, loans, insurance and pensions. This can limit their financial options and opportunities.
  Have you heard about the ‘pink’ tax? No its have nothing to do with the Barbie movie, essentially, products that are marketed to women, like shampoo and razors, often cost more than the male equivalent.

Opportunities for Irish Women in Personal Finance
Despite these challenges, Irish women also have many opportunities to improve their financial situation and achieve their goals. Some of the steps that can help you take control of your money include:

1. Budgeting: Creating a realistic budget that tracks your income and expenses can help you manage your cash flow, identify areas where you can save or cut costs, and plan for future expenses or emergencies.
2. Saving: Setting up a pension early and making the most of employer contributions can go a long way to bridging the gap and improving your financial wellbeing. Setting aside a portion of your income every month for a savings account can help you build a financial cushion, prepare for unexpected events, and fund your short-term or long-term goals.
3. Investing: Investing your money in assets that generate returns, such as stocks, bonds, funds or property, can help you grow your wealth over time, beat inflation and secure your retirement.
4. Learning: Educating yourself on financial topics and concepts can help you improve your financial literacy and confidence, make informed decisions and avoid common pitfalls or scams.
5. Seeking advice: Consulting a professional financial adviser or planner can help you get tailored guidance and support on your specific financial situation and goals, and help you create a realistic and achievable plan.

Resources for Irish Women in Personal Finance

If you want to learn more about personal finance and how to manage your money better, there are many resources available online or offline that can help you. Some of the examples include:

• Blogs: There are many blogs that offer useful information, tips and insights on personal finance topics, such as MoneyWhizz, The Savvy Woman’s Guide to Financial Freedom, EVOKE Money, and our own careycorbett.com website offers personal finance articles.
• Podcasts: There are many podcasts that feature interviews, stories and advice from experts and ordinary people on personal finance topics, such as The Women’s Podcast by The Irish Times, The Money Clinic by Independent.ie, The Money Podcast by RTE or HerMoney with Jean Chatzky.
• Books: There are many books that cover various aspects of personal finance, such as The Money Book by Susan Hayes Culleton, The Savvy Woman’s Guide to Financial Freedom by Susan Hayes Culleton, Smarter Investing by Tim Hale or The Automatic Millionaire by David Bach.
• Courses: There are numerous courses that offer structured and interactive learning on personal finance topics, such as Wellbeing Programme by Bank of Ireland or Money Matters by Citizens Information.
• Events: There are many events that offer networking, inspiration and education on personal finance topics, such as Women in Business Network by Local Enterprise Office.

Given our role as a Financial Advisor one thing that really stands out to us is that women often opt for lower risk investment choices than men.
This might result in less sleepless nights during periods of market volatility, but it also results in reduced performance over the lifetime of a pension.
So even if a woman contributes the same amount to her pension as a man, and for the same amount of time, the overall pot ends up smaller due to growth constraints.

Contact Carey Corbett Financial Solutions today for an appointment to discuss your own personal finances on 065-6893540