The journey to leadership is often fraught with unique challenges, especially for women. Despite progress in gender parity, women remain underrepresented in senior management roles globally. In Ireland, for instance, the Grant Thornton Women in Business 2024 report highlights that only 33% of senior management roles are held by women. As women continue to break barriers in business, financial planning becomes a critical tool to help them balance career ambitions, wealth accumulation, and personal life goals.
This blog explores the importance of financial planning for women in leadership, addressing the unique challenges they face and offering actionable insights to achieve financial independence and security.
Despite strides toward gender equality, the lack of women in senior management remains a persistent issue. The Grant Thornton Women in Business 2024 report reveals that while progress has been made, women still face systemic barriers, including unconscious bias and limited access to mentorship opportunities. In Ireland, the numbers are improving but still fall short of true gender parity.
Research consistently shows that diversity in leadership drives better business performance. Companies with gender-diverse leadership teams are more innovative, financially successful, and better equipped to navigate complex challenges. Achieving gender parity in leadership is not just a moral imperative but a business necessity.
Women in leadership often face unique financial challenges, including the gender pay gap, career interruptions for caregiving, and longer life expectancies. These factors can significantly impact their ability to build wealth and achieve long-term financial security.
The gender pay gap remains a significant barrier for women in leadership. On average, women earn less than men, which affects their ability to save and invest for the future. Closing this gap is essential for achieving financial equality.
Many women take career breaks to care for children or ageing parents, which can disrupt their earning potential and retirement savings. Effective financial planning can help mitigate the impact of these interruptions by creating a safety net and ensuring continued financial growth.
Women generally live longer than men, which means they need to plan for a longer retirement period. This requires careful financial planning to ensure that savings and investments last throughout their lifetime.
Women in leadership roles often juggle demanding careers with personal responsibilities, such as raising children or caring for ageing parents. Effective financial planning helps them balance these competing priorities while ensuring their financial goals remain on track.
Start by creating a comprehensive financial plan that includes budgeting, saving, and investing. A solid financial foundation provides the stability needed to pursue long-term goals, such as retirement planning or funding a child’s education.
Budgeting is the cornerstone of financial planning. It helps you track your income and expenses, identify areas for savings, and allocate funds toward your financial goals. Building an emergency fund is also crucial to cover unexpected expenses without derailing your financial plan.
Women often tend to be more risk-averse when it comes to investing. However, investing is essential for wealth accumulation. Consider working with a financial advisor to develop an investment strategy aligned with your risk tolerance and financial goals.
Diversifying your investment portfolio can help mitigate risks and maximise returns. A mix of stocks, bonds, and other assets can provide a balanced approach to growing your wealth over time.
With longer life expectancies, women need to plan for a retirement that could last 30 years or more. Maximise contributions to retirement accounts and explore additional savings vehicles to ensure a comfortable retirement.
Take full advantage of employer-sponsored pension plans and consider additional retirement savings options, such as personal pensions or Additional Voluntary Contributions (AVCs). Regularly review your retirement plan to ensure it aligns with your long-term goals.
Insurance is a critical component of financial planning. Ensure you have adequate coverage, including life, health, and disability insurance, to protect your wealth and provide for your loved ones in case of unforeseen events.
Estate planning is another essential aspect of protecting your wealth. Creating a will and setting up trusts can ensure that your assets are distributed according to your wishes and provide for your family’s future.
Navigating the complexities of financial planning can be overwhelming. A financial advisor can provide tailored advice to help you achieve your goals, whether it’s growing your wealth, planning for retirement, or balancing career and life priorities.
A financial advisor can help you create a personalised financial plan that addresses your unique circumstances and goals. They can also provide ongoing support and guidance to help you stay on track and adapt your plan as your needs evolve.
Financial planning is not a one-size-fits-all process. For women in leadership, the complexities of balancing career, wealth, and life goals require a personalised approach. Seeking professional financial advice ensures that your financial plan is tailored to your unique circumstances and goals.
At Fairstone Ireland, we understand the challenges women in leadership face. Our team of experienced financial advisors provides tailored financial advice to help you achieve financial independence and security. Whether you’re planning for retirement, investing for the future, or balancing competing priorities, we’re here to support you every step of the way.
Related articles:
Gender Pension Gap in Ireland: Is it possible to bridge the gap?
This article is for general information purposes and is not an invitation to deal or address your specific requirements.
