Three things Ladies should think about to improve their finances

They say men are from Mars and women are from Venus, but does that really matter when it comes to our money?

Do women need to think differently about their savings, investments and retirement? The short answer is, yes.

Much like a car accelerates and decelerates, in life we have our ‘accumulation’ years - the time spent building our wealth by working, saving and acquiring assets like a property.

Once we reach retirement, we enter the ‘decumulation’ phase, drawing income from the savings and pension pots we have built up during the accumulation years.

What you’re left with to ‘decumulate’ once retirement sets in, will to a large extent be a result of what you’ve managed to ‘accumulate’ during your working years.

And, here’s the rub: women face very different challenges to men in their accumulation years, which ultimately impacts how much they’re left with one day.

These challenges range from the fact that women, on average, still earn less than men, leaving them with less to save.

Many women will take time out from the job market to have children which will inevitably impact their earnings potential and the size of their pension savings.

And, even if children aren’t for you, you might find yourself taking a career break to care for a sick or elderly relative - it’s a well-established fact that women are still the primary caregivers

If you’re struggling to see the problem, you need only look at the numbers, which reveal a glaring gender divide when it comes to our pension savings - women, on average have around a 25 per cent lower income than men in their first year of retirement. (Yet, women on average are expected to outlive men.)

So, yes - women do need to think differently about their finances. The first thing you need to do is tackle that female tendency of putting everyone’s needs ahead of your own and start to give your financial future more than just a fleeting thought.