Lowes Magazine 122

Growing gender pension gap concerns A GROWING AREA OF CONCERN WITHIN financial services is the gap between what women on average can expect to receive from their pension compared to men. A recent survey found that on average, men over 55 anticipate an annual retirement income of £20,712, while women expect their income to be £14,964. There are many reasons for this discrepancy, including pay inequality and career breaks. Also, worryingly, statistics from the Office for National Statistics reveal that 78% of men over 75 had some form of private pension wealth compared to just 54% of women. Of those with private pensions, men had average savings of £135,700 – almost double that of women at £69,800. What also needs to factored in is longevity – in general women tend to live longer than men. Research by Just Group showed that widowed women aged over 75 outnumber their male counterparts by three to one, while five times as many women are reaching 100 years of age. These figures serve to highlight the need for women to prioritise their long-term financial planning. Exploring options as early as possible, including starting to make pension and retirement provision for themselves, can help create greater financial stability later in life and also to manage the impact of the retirement gender gap. They also highlight the need for careful planning by couples to allow for the possibility that one partner may outlive the other. Women in particular should think about how their income might change if their partner dies before them. They’ll want to understand what proportion of their partner’s pension will still be paid to them or if they’ll have to rely on their own savings and assets. The government’s recent proposals on social care still make it likely that many people will need to allocate some of their wealth to meet care needs in later life. The combined factors of longer life expectancy and smaller personal savings means that women in particular will benefit from a clear understanding of their financial plans for later life. In addition, research by financial services product provider abrdn revealed that women are less likely to seek advice on their retirement plans in comparison to men. Life does not stand still and as with increases in longevity, and the possibility for people to be spending longer in retirement, understanding the implications, financial planning for the future and building a retirement pot are essential for everyone. This is where personalised financial and retirement advice can be invaluable. If you or someone you know would like a financial health check and help in planning for their financial future, our Advisers are here to help. Please call 0191 281 8811.

Managed Investment Portfolios Service Uncertain times is one reason Lowes recently launched our Managed Investment Portfolios service, which offers eight investment portfolios allocated to collective investment schemes, such as open-ended investment schemes (OEICs) and unit trusts run by experienced fund managers. This service has discretionary authorisation, which in layman’s terms means our investment managers can manage the portfolios using their discretion, and so are able to quickly make changes to the investments within the portfolios. Financial advisers usually work on an ‘advised’ authorisation, which means any changes must be communicated and agreed by the individual client before they can be actioned. This can take time to put in place. In times where decisions need to be made and actions taken more quickly, the discretionary model allows that to happen. It also allows our managers to take advantage of new opportunities as they arise. Launching the Lowes Managed Investment Portfolios is another way we have been able to benefit our clients using our longevity and experience in the financial advice market. The portfolios offer a range of options depending on the risk tolerances and specific investment objectives of individual clients. Lowes’ advisers will identify the portfolio, or combination of portfolios, which best suits each client’s appetite for risk, capacity for loss and which most closely matches their investment objectives. The eight portfolios offer options for growth, income or a combination of the two and are managed by our award-winning team. The team will also re-balance the portfolios to ensure asset and individual fund allocations do not drift too far from the original, intended parameters. Once in place the management of the portfolios, including any fund switching, all happen promptly and seamlessly behind the scenes. Best of hands Whether your investments use Lowes’ advisory or discretionary portfolio services, we look to deliver the very best management of your investments, using our many years of experience and expertise, our dedicated investment and support teams combined with our Advisers’ knowledge of your individual financial circumstances and needs. All of which we hope will give you greater peace of mind in uncertain times and help you build your long-term wealth. Please note: No investment is risk free and even the lowest risk investment carries the potential of significant loss in the most extreme circumstances and so diversification is key. Risk tolerance and capacity for loss will be discussed with your adviser before any investment is recommended.

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