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Why Savvy Women Save

Think financial advice is not for you?

Think again!

Here Sarah Travers, Senior Financial Planner at Ajax Wealth Management Limited shares sarah travers financial planningher advice and worrying trends she sees for women in business. You can talk to Sarah in person at many of our Essex events – including Colchester, Braintree and Tendring;

For women in particular it is vital we take charge of our financial security and that is why I am on a mission to get every woman engaged with their financial planning. Read on to find out why and what we can all do to help ourselves.

NB Financial planning is for everyone – not just the rich and famous!

There is a worrying level of financial inequality and this is damaging our financial futures. We are all aware of the gender pay gap, which has been well documented, and this has a knock-on effect into later life. Women tend to live longer and earn less – we are also more likely than men to take career breaks to care for children or older relatives. Put this all together and it does not create a great financial picture.

Women currently aged 55-64 will on average have a pension pot of just half that of a man of the same age. We also tend to have smaller State Pension income and even if we were to retire on the full amount this currently only equates to a little over £700 per month.

Why don’t women engage with financial planning?

Studies have shown that women tend to lack confidence in making financial decisions and in investing, financial jargon is off-putting, we lack time and quite frankly do not know where to go to get good, reliable financial advice. Many of us also put off saving or making financial provision until we have ‘more money’. If we save, we often to stick to the apparent safety of cash which may not be in our best interests over the longer term.

These misconceptions are damaging and limiting our financial security – let me say it again – financial planning is for everyone, not just the rich and famous!

There are steps we can all take to help ourselves and each other.

What can be done? Start by thinking about some important questions:financiall planning sarah travers at the Essex BWN

  • What would happen financially if you were to die suddenly?
  • Would your family be financially secure, would extra money be needed to pay for help with children or an older relative, for example?
  • What would happen if you (or your spouse/partner if you have one) were unable to work long term due to illness or accident?

If you think this won’t happen to you (unless you have a crystal ball) just bear in mind that in 2017 UK protection insurers paid out a record £5billion in claims.

When do you want to retire and what do you want your retirement to look like? Most of us do not envisage retirement scrimping and saving living on the poverty line.

What if you need care in later life? It is estimated that 1 in 2 women will need some form of care in later life – this will not be funded by the NHS unless there is a severe medical need, and with local authority budgets being squeezed to breaking point they are only able to help those with the highest level of need and who do not have capital above £23,250.

Next look at your budget – sit down and write out your expenditure across the year – include everything from essential expenditure like food and utilities to luxury spends like holidays. Don’t forget about annual costs and little things, like getting the chimney swept or the car MOT. Once you have your household expenditure detailed you can see how much surplus income you have on average.

If you do not have a surplus you may want to consider whether all your expenditure is needed – could it be reduced? Freeing up even small amounts per month could help to pay for important life assurance, for example, or help you to start saving into a pension. Take stock of any financial arrangements you already have in place – make a list and consider whether they are still appropriate for your needs and are providing good value.

Make sure you keep track of pensions – there is an estimated 1.6 million lost pension pots valued at some £20million that could remain unclaimed. The Pensions Tracing Service may help you to find lost pensions.

Tackle your needs in order of priority – for everyone this will be different. Speaking to a qualified financial adviser can really help you to think about what is important for you and to explain your options clearly. Many financial advisers (including me of course) offer an initial meeting at no cost to discuss your circumstances and how we may be able to help. This is a fantastic opportunity to get some free guidance and I would encourage everyone to do it.

Make sure you are using your tax allowances and claiming any benefits you may be entitled to – not all are means tested. If you run your own business – which many of you reading this will do – consider appointing an accountant if you don’t already have one – they can make sure you comply with HMRC regulations and operate tax efficiently.

Finally, don’t forget about the importance of having a will and powers of attorney in place – that way you can ensure your assets are dealt with how you wish on death, and if you cannot make decisions for yourself during your lifetime (which could, for example, result from an accident or sudden illness) you will have appointed people you trust to make those decisions for you. Remember that family members do not have an automatic right to make decisions if you lack capacity and on death there are strict rules as to who will inherit if you do not leave a will.

Conclusion Financial planning is a vast topic and that in itself can seem daunting, however, it is vital that we do not leave our financial security to chance. Taking small steps can help reap great rewards in the long term.

Take action now – the sooner you act the more chance you will have of a secure financial future – and that is something I think we all aspire to.

Do get in touch if you would like to discuss how I can help.

Sarah Travers LL.B. (Hons) DipPFS

Tel (office): 01206 805901
Mobile: 07484 231768


Suite 1, Unit 4 Lanswood Park Business Centre, Broomfield Road, Elmstead Market, Colchester CO7 7FD


Office for National Statistics pension wealth, February 2018 (sheet 6.5) bit.ly/2JLAHAF

Based on full entitlement to the new state pension in 2018/19

Source: Association of British Insurers iv Source: Association of British Insurers v https://www.gov.uk/find-pension-contact-details Sarah

  • December 2, 2018

Do you have to put your freelancers into your pension scheme?

Freelance workers based in the UK have a lot of rights but did you know they have a right to join your workplace pension scheme and must be included in your auto-enrolment?

It sounds a bit daft on the face of it, but here is how it goes for workers based in the UK:

  • workers earning less than £5,786 a year have the right to join but you don’t have to make ’employer minimum’ contributions.
  • workers earning £5,786 or more a year have the right to join your workplace pension scheme and you must contribute if they do
  • workers earning £10,000 or more must be automatically enrolled (unless opted out) and you must contribute

My freelancers are self employed

If you’re thinking – what has this got to do with me as my freelancers are all self-employed? – then you could be in for a shock.

Freelancers can be running their own business, but they can also be categorised as workers (or even employees).   Your label on the relationship does not define their status.  Nor does the fact they invoice you, or have other clients, always help. 

If they don’t have a company and are invoicing you in person  there is a risk your freelancer will be categorized as a worker and this may trigger their entitlements.

How to handle freelancers and workplace pensions

  • Check whether they are invoicing you via a company or just using a business name
  • Check the freelancer’s base – are they working from the UK?
  • Check whether you have a written contract with them
  • Get that contract reviewed to establish the status 
  • If no written contract exists (or an out of date one) update it to properly reflect the arrangements between you.  Here’s a link to ours.
  • Talk to your accountant/payroll/pensions provider and let the know you have potential workers who may be eligible
  • Talk to us about how to contract and manage your freelancers in a way that is appropriate for your business

Want a free contract review? 

If you are paying a UK based freelancer and not sure if they are a worker or running their own business  let us check it out 

  • June 21, 2017

Free Seminars – Workplace Pensions for Small Businesses

Here BWN member Fiona Cowie from Essential HR speaks about some opportunities to understand the legislation and how it could impact you and your business. We hear many business women say they are not willing to employ staff because they “can’t face all that” however with the right staff and the right support your business will be able to grow in ways that are not easily accessible for the sole trader.

Free Breakfast Seminars – Workplace Pensions for Small Businesses

Workplace Pensions for small businesses is about to become a reality as the staging dates (the date on which the new laws must be met) for those businesses with less than 50 employees begin from 1st March.  If you are a business with one or more employees, you will have a staging date already allocated to.  Workplace pensions will have an impact on your business in the shape of extra administration, data processing, payroll and compliance which all mean additional cost.

We are running two FREE breakfast seminars in March to inform small businesses about workplace pensions and what it means for them.  To learn the key facts about workplace pensions please come along and hear Fiona Cowie, your local Workplace Pensions Specialist.

4th March – 8am – 9.30am at Ivy Hill Hotel, Margaretting.  In partnership with Sound Financial Planning and Consort Insurance.  Email fiona@essentialhr.co.uk to book a place.

17th March – 8.30am – 10.30am at The Bay Horse, Moulsham Street, Chelmsford.  In partnership with Success Recruit.  Visit Eventbrite at https://www.eventbrite.co.uk/e/unlocking-the-myths-about-auto-enrolment-tickets-15811414366 to book your place.

Don’t leave your planning too late.  Come along now to find out what’s involved in Workplace Pensions.

To learn more about Fiona Cowie and Essential HR visit – www.essentialhr.co.uk

Connect with Fiona on Twitter – http://twitter.com/HRandReward

Telephone – 01245 349492
Email – fiona@essentialhr.co.uk

  • March 5, 2015