Financial planning for women

What's different about women?
A woman who is 65 now can expect to live three or four years longer than a man of the same age - which means she is likely to: spend longer in retirement; outlive her male partner; and spend some of her retirement living alone. Forty per cent of women aged 65 to 74 are on their own. The proportion increases with age - of the 74-84 age group, 60% are living alone.

Because women live longer than men, their need for retirement savings may be greater - particularly if they want to maintain a good standard of living. Women also tend to earn less than men during their working life and are usually younger than their partners. And that means if you're a woman, you're likely to have saved less.

Why retirement planning is critical for women
When making decisions about investing or spending your retirement savings, it's important you and your partner consider both your life expectancies. If you make plans based on the man's life expectancy, and you live longer than him, you may not be left with enough to be comfortable.

Women must take an active role in financial planning, firstly because you need to make sure your interests are being looked after and, secondly, because of the high likelihood you'll spend at least some years on your own. You need to know what money you'll have, where it is and how to manage it when you're alone. This is particularly important if you have an older partner.

The 'Get Sorted' checklist
Talking about financial planning is easy, but it can be difficult to know where to start. Below is a checklist to help you prepare for retirement and financial wellbeing:
· Get a budget and stick to it - know where your money is going.
· Pay off debt - high interest first.
· Work out your net worth and set goals to increase it.
· Get an emergency fund - two or three month's income.
· Save for the short term - a deposit, holiday, or a lump sum to invest.
· Save for the long term (retirement). If you have access to a workplace savings scheme consider it seriously, especially if your employer will make a contribution too. Check out the scheme's rules. Women in particular need to make sure the scheme is flexible. What happens if you take time out to have children, or look after a family member?
· Teach your kids about money.
· Protect your assets - make a will, consider insurance, or setting up a trust.
· Consider investing to make your money work for you.

For more information about financial planning visit Sorted. Sorted is packed with information and powerful calculators to help you get ahead.