Podcast Summary
Leveraging LinkedIn for Hiring and Financial Education: Small businesses can access untapped talent pools on LinkedIn and women can benefit from financial education resources like Vestpod to make informed decisions.
LinkedIn is a valuable resource for small businesses looking to hire top talent. Sandra, a professional who wasn't found on other job sites, emphasized the importance of using LinkedIn to access a pool of professionals who may not be actively seeking new opportunities but could be open to the right role. With over 70% of LinkedIn users not visiting other leading job sites monthly, businesses risk missing out on great candidates if they don't post jobs on LinkedIn. Meanwhile, in the world of investing, women are underrepresented, with lower savings in stocks and shares ISAs and a significant pension gap. Emily Bele, the founder and CEO of Vestpod, shared her mission to educate women about investing and financial management. Her background in finance and her personal experience of not proactively managing her finances inspired her to start Vestpod and empower women to take control of their money. Both Sandra and Emily's stories highlight the importance of utilizing platforms like LinkedIn for hiring and taking advantage of resources like Vestpod for financial education. By doing so, individuals and businesses can unlock opportunities and make informed decisions.
Understanding and addressing unique financial challenges for women: Women face unique financial challenges due to the gender pay gap and saving for retirement, but prioritizing finances and starting small can help secure their future.
Women face unique financial challenges, particularly when it comes to the gender pay gap and saving for retirement. Despite the taboo around discussing money, understanding and addressing these issues is crucial for financial independence. Two common questions from women in the community are how to start investing, even with limited resources, and how to balance short-term and long-term financial priorities. Women often prioritize saving for their children over their own retirement, but the "motherhood penalty" and high cost of childcare can make it difficult for them to earn and save enough. Addressing these structural issues, such as the gender pay gap and affordable childcare, is essential to help women bridge the savings and pension gaps. Start small, prioritize your finances, and don't let societal pressures hold you back from securing your financial future.
Women need earlier pension savings: Women must save earlier and consistently for pensions to close the gender wealth gap, with £100k less expected for women in their twenties and 70% lower retirement income
Women need to prioritize and start saving for their pensions much earlier than men due to the significant pension wealth disparity between genders. The average pension pot for a 65-year-old woman in the UK is only £35,800, which is a fifth of the average pot for a man of the same age. Women in their twenties can expect to have £100,000 less in their pension than men of the same age, and in retirement, women will have 70% lower pension income than men. To bridge this gap, women need to contribute earlier and consistently, even if they are out of the workforce or earning less. Additionally, they may need to ask their employers to enroll them in a pension if they earn less than £10,000, and address issues with the state pension where women can't get their full benefits due to time out of the workforce. It's crucial for women to be proactive and informed about their pension savings to secure their financial future.
Maximizing Benefits: National Insurance and Pensions for Women: Women should ensure National Insurance eligibility through Child Benefit and optimize pension savings by contributing more and considering caregiving costs.
It's important for individuals, particularly women, to be aware of their National Insurance and pension contributions, even if they're not currently earning or their partner earns more than the threshold. For National Insurance, those who have taken time off work to care for children can claim Child Benefit to fill any gaps and ensure eligibility for the full state pension. Regarding pensions, auto-enrollment is a great start, but individuals can opt to pay in more and take advantage of their employer's matching contributions to increase their long-term savings. Women often bear the responsibility for childcare costs and should consider this when deciding how much to contribute. By being informed and strategic, individuals can maximize their benefits and secure their financial future.
Women leading conversations on shared financial responsibilities: Encourage women to invest, provide education and resources to understand risk, and bridge the gap towards gender equality in financial responsibilities and representation.
Women are leading conversations around shared financial responsibilities in regards to childcare costs and are pushing for equal participation from their partners. Simultaneously, the financial industry is recognizing the importance of addressing the gender pensions gap and encouraging women to invest. However, women often feel disconnected from the financial world due to a lack of representation and perception of risk aversion. To bridge this gap, it's crucial to encourage women to start investing at any level and provide them with the resources and education to understand risk and make informed decisions. By having these conversations and making strides towards gender equality in financial responsibilities and representation, we can create a more inclusive and equitable financial landscape.
Women Outperforming Men in Investing: Women's long-term investment strategies, diversification, and diligence lead to better portfolio returns. Westport empowers women financially, offering courses and resources to help them learn and grow together.
Women investors tend to outperform men due to their long-term investment strategies, diversification, and diligence. This is according to a study that shows women return more on their portfolios. Emily, the founder of Westport, aims to empower one million women financially and provide a space for them to learn and connect. Westport offers various courses, both online and in person, where women can share their experiences and learn from each other. It's not about comparing oneself to others but growing together. Westpod also hosts events, such as a recent festival on taking charge of one's financial future. Understanding money mindset and attitude towards money is crucial, especially for women, as money is just a tool to achieve various goals in life. Practical tips and guidance are available, such as budgeting worksheets and retirement calculators. For those looking to tackle their finances, reviewing and updating your budget in today's cost of living environment is a great first step.
Consider short-term and long-term financial goals: Determine where you'll need money in the future, from next year to ten years, and manage your budget accordingly. Seek professional advice for personalized recommendations.
It's important to consider both short-term and long-term financial goals when managing your budget. Determine where you'll need money in the next year, five years, and ten years. This could involve starting small-scale investments or reevaluating your pension plan. For more guidance on navigating markets during uncertain times, listen to our previous episode. Remember, Money Clinic is a general financial discussion and not an investment recommendation or individual financial advice. Always consult an independent financial adviser for personalized advice. Additionally, don't forget to celebrate the special moms in your life this Mother's Day. Save up to 40% on Mother's Day bestsellers at 1 800flowers.com/acast. And, if you'd like to discuss your financial concerns on a future episode of Money Clinic, feel free to get in touch. This episode of Money Clinic was produced by Persis Love and Phillipa Goodrich, with executive production by Manuela Saragosa, sound engineering by Breen Turner, and original music by Metaphor Music.
