Critical Importance of Financial Planning for Women
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Given that women generally outlive men—with a life expectancy of 84.4 years for women versus 80.8 years for men in Ireland as of 2020—it’s clear that they require more financial preparation to sustain a desired standard of living in later years.
The FPSB Ireland’s recent Value of Financial Planning Research 2023, involving more than 1,000 Irish consumers, sheds light on the positive influence of financial planning on women’s financial confidence and well-being.
Insights from the Study:
- Enhanced Financial Confidence among Women: The study reports an uplift in financial confidence among women who have engaged in financial planning, with a notable proportion feeling prepared for retirement and confident in their financial knowledge.
- The Significance of Financial Independence: It’s crucial for women to have an in-depth understanding of their financial landscape, especially those sharing finances, to ensure resilience in the face of unexpected life events.
- The Power of a Written Financial Plan: Women equipped with a detailed financial plan express a stronger belief in their ability to realise their life ambitions. Financial planning is often motivated by various factors, including life goals and unexpected financial windfalls.
- Addressing Unique Financial Challenges: Women’s distinct financial challenges, such as longer life expectancies and potential career breaks for caregiving, necessitate bespoke financial planning.
- Trusting Relationships with Financial Planners: A significant majority of women report having considerable or complete trust in their financial planners, emphasising the importance of a relationship built on transparency and expert advice.
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The Value of Engaging with a CFP® Professional
A notable portion of the surveyed women are aware of the Certified Financial Planner designation, with many benefiting from the guidance of CFP professionals. This highlights the value of professional expertise and accreditation in financial planning.
Key Advantages of Engaging a Financial Planning Professional
Working with a financial planning professional not only simplifies financial complexities but also enhances confidence in financial decision-making, leading to improved financial well-being and goal achievement.
Conclusion
Beyond mere budgeting, strategic financial planning is about judicious resource management, informed investing, and cultivating long-term financial security. For women, engaging in proactive financial planning promotes not only personal wealth but also contributes to broader societal economic empowerment and gender equality.