💸Research has revealed that women’s pensions hold around 40% less than those belonging to men, with this pension gap only increasing with age (Pension Bee, 2021). With the gender and ethnicity pay gaps impacting women’s ability to save more into their pensions, how can we bridge this gap and ensure we’re saving for our future selves and happy retirement?

💪To tackle this subject, I am joined by 4 brilliant guests who will take us through the foundations of what a pension is, their tips and guidance on investing with impact and their personal stories of starting and saving for retirement.

👩‍💼Our guests are:

Queen Bee of pensions Romi Savova, founder and CEO of PensionBee.
Money expert Emma Maslin, financial coach, therapist and founder of The Money Whisperer.
Vestpod community ambassador Nina Mohanty, founder of Bloom Money and passionate financial inclusion advocate.
Vestpod community ambassador and Senior Account Manager for PitchBook, Vivien Adeosun

💥Today on The Wallet:

1️⃣ People tend to save more when they can see themselves at retirement age, so we meet our future selves and learn about their lives, which helps us prioritise our future needs over opting for instant gratification.

2️⃣ We’ll discuss how to calculate your pension pot goals, how to get clear on where your money is invested, and how to move it if it isn’t aligning with your values.

3️⃣ We know the pension gap is a challenge affecting women in retirement, so we look at practical and hands-on ways to boost our pension savings.

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You can listen (57 min) and subscribe here:

Apple Podcasts

Spotify

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1. Understand pensions and connect with your future needs

Visualising future you helps you save for retirement. Yes, really! For a bit of fun to start, why not try FaceApp and see yourself transform into a senior version of yourself.
After the laughter upon seeing your face 30 years down the line subsides, start to really think about what kind of life Future You would want to live.
Try to connect with that version of yourself (remember… it is still you!). Will you want to buy a glamorous villa in Ibiza and spend your time sipping cocktails and watching sunsets? Or would you want to embark on ambitious round-the-world travels? Or perhaps you want to stay where you are, in your home, and live a simple but comfortable life. Whatever your future looks like, one thing is certain: you need to start saving for it today.
First, let’s get down to the very basics: a pension is a pot of money that enables you to draw an income when you stop working. A pension is always invested, and the investments that sit in the pension are protected from you taking them out until you need them in the future. There are different types of pensions.
The State Pension is a regular payment from the government that you can take out when you reach State Pension age. You can qualify for the full pension if you have contributed to National Insurance for at least 35 years. It is not a lot of money — sitting at just about £9,350 a year.
The Workplace Pension is a pension you’ll have if you are employed, which is arranged by your employer. You are auto-enrolled to a workplace pension (you can always opt out, but this isn’t something we recommend doing!). With a workplace pension, around 8% of your monthly earnings will automatically be invested into your pension each month (the breakdown is: 5% from you, and a minimum of 3% from employer contributions). Your employer has to contribute if you're in a workplace pension and earn over £6,240 a year. Another benefit is tax relief: when you pay into your pension, some of the money that would have gone to the government as tax goes towards your pension instead.
The Personal Pension is a pension that you arrange yourself, which is especially important if you are self-employed. However, you can have a personal pension on top of your workplace pension and state pension. For example, if you want to retire before the state retirement age, say, at 50, you’ll need a personal pension to fall back on.

The general rule of thumb is that you want to be saving about 15% of your after-tax income into your retirement. This, of course, depends on your current age and when you want to retire.
It’s worth exploring what your life will cost in the future: eg. keep in mind you will probably have paid off your mortgage and your children will likely have flown the nest, so your expenses will be reduced. A retirement calculator can help you figure out how much you need to aim to save for your retirement (see resources below).

2. Think ethical, and don’t let jargon scare you off

*Emma, Nina, Vivien, Romi and Emilie looking fabulous as ever in their older age!*

A lot of people don’t know that often, our pensions are invested in fossil fuel companies, tobacco, arms, deforestation, and various other carbon-intensive sectors. However, we have the power to ensure that our pensions are invested in line with our values.
If you’re concerned about how your pension is invested, have a conversation with HR and find out what options you have. If they don’t offer investing in sustainable funds, ask them why!
Legacy pension providers traditionally don’t know how to talk to the average consumer, and the pensions industry is known for being laden with complex jargon. Don’t let that deter you!

3. Give your pensions a boost

There are many reasons behind the gender pension gap, but the one takeaway to remember is that it’s not women’s fault. Women are already doing a lot: we’re working a lot, and we bear the brunt of child caring and other caring responsibilities (which is unpaid).
How do we get to a place where women retire with as much as men? The answer is not as complex as you might think: men and women simply need to work equal hours, for equal pay. What this truly means is that when it comes to childcare responsibilities, men need to be bearing an equal share of the unpaid care work for their families.
Women’s partners can also pay into their pensions while the women take time off working caring for their children.
There are practical things you can do to help boost your pension, and it starts with consolidating your pensions that you had from previous jobs into one place. This will help give you a huge sense of control and comfort.
The most important thing to help you boost your pension is understanding how much you need to be putting away toward your dream retirement. At the end of the day, pensions are all about funding future you — so once you’ve seen how much you’ve saved already, you can then use a pension calculator to figure out how to best reach your goals.
You need to realise that your pension contributions magnify themselves over time (because you’re investing for a long period of time).
Be laser-focused on scaling your disposable income, and never forget to negotiate your salary: that way, you can put more towards your pensions pot.
If you find yourself in a situation where you’re getting divorced, don’t ignore your partner’s pension. Speak to a specialist pensions lawyer to let yourself get access to your ex partner’s pension, because it’s often overlooked… but is a huge deal!
Set it and forget it. Automate your monthly contributions toward your pension pot, and let them grow without you having to lift a finger!
Just. Get. Started. Don’t be anxious about taking the plunge — once you get going, you’ll be so pleased that you got started when you did!

RESOURCES:

We shared some resources in this episode, all the links are below:

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🐝 The event’s partner PensionBee are also offering you a £25 pension contribution (£20, plus £5 in tax relief) when you sign up. To claim the offer, follow this link: https://www.pensionbee.com/vestpod. Capital at risk.

* Please note that we are not certified financial advisers! The articles and information made available on Vestpod and this podcast are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances. Also, if you’re investing money, make sure it’s for the long term and you understand what you're investing in.*

Let's Boost Our Pensions, With Vivien, Emma, Nina and Romi

1. Understand pensions and connect with your future needs

2. Think ethical, and don’t let jargon scare you off

3. Give your pensions a boost