Financial planning experts including Claire Trott of wealth management group St James's Place have outlined seven vital steps for women in their 50s to secure their personal finances. Research shows that while women usually take the lead in household budgeting and bill payments, they often do not make major long-term financial decisions.
Experts caution that unexpected midlife events such as divorce, widowhood, or taking on care responsibilities for children or elderly parents can derail personal finances during midlife. "Women who engage with long term finances feel more resilient, comfortable and in control of their financial future," Trott said.
The first recommendation is for women to maintain separate bank and savings accounts alongside any joint accounts. Women in their 50s are more likely to hold joint accounts than younger women, but joint accounts allow either partner to empty funds without permission. A study by the University of Manchester found that around 30 per cent of women have experienced financial control from a partner.
"If you’re unhappy, then having savings gives you options," said Helen Morrissey, head of retirement at wealth platform Hargreaves Lansdown. Opening separate accounts is free and simple, while also helping couples maximize tax-free allowances. Everyone can save up to £20,000 annually into a tax-free Isa. Basic rate taxpayers receive a £1,000 tax-free interest allowance on cash savings, higher rate taxpayers get £500, and additional rate earners receive no allowance.
National Insurance and pension records
The second priority is building a full record of National Insurance contributions to secure the state pension, which rises under the triple lock by the highest of inflation, wages, or 2.5 per cent annually. Workers need 10 years of contributions to qualify for any state pension and 35 years to receive the full rate of £241.30 a week.
Women can check their state pension forecast on the Government website at gov.uk/check-national-insurance-record or by calling the Future Pension Centre on 0800 731 0175. If gaps exist, women should check whether they qualified for National Insurance credits during periods of working or caring through benefits like child benefit, jobseeker's allowance, or universal credit, which can be claimed back at gov.uk/national-insurance-credits.
Wills and legal protection
More than half of adults lack a valid will, which can cause family disputes and unnecessary tax bills if someone dies suddenly. Wills can be created using DIY stationer packs, online services such as Rocket Lawyer, or through a solicitor or qualified writer, provided they are properly witnessed.
Along with a will, setting up lasting powers of attorney (LPAs) allows a designated person to make financial and healthcare decisions if an individual becomes incapacitated. Morrissey called an LPA "one of the most important documents you will ever fill out." Applications take eight to ten weeks via gov.uk/power-of-attorney/make-lasting-power, offering separate forms for property and financial affairs or health.
Emergency credit and retirement targets
The fourth recommendation is maintaining an emergency high-limit credit card, with average card limits standing just under £6,000. Experts advise keeping the card unused, or even stored in freezer water, with a plan to clear balances or transfer debt to a 0 per cent balance transfer card before interest accrues.
Fifth, savers are advised to create a single spreadsheet listing every past employer to trace lost retirement pots. Pension Policy Institute research indicates there are 3.3 million lost pensions in the UK worth an average of nearly £10,000. Lost pots can be identified through the Pension Tracing Service at gov.uk/find-pension-contact-details.
Sixth, individuals should calculate their target retirement income based on industry benchmarks. The Retirement Living Standards set by Pensions UK estimate that a single pensioner requires £32,700 annually for a moderate lifestyle, while couples need a combined income of £45,400. Tools like the PensionBee calculator at pensionbee.com/uk/pension-calculator can assess progress. Workplace auto-enrollment sets minimum contributions at 5 per cent for employees and 3 per cent for employers, with potential salary sacrifice National Insurance savings.
Investing in individual accounts
Finally, experts advise women to hold stock market investments in their own names. Although older women are 50 per cent more likely than men to feel apprehensive about investing, a Warwick Business School study showed female investors outpace men by nearly 2 per cent annually on average.
"Start with a stocks and shares Isa: you can open one online in 10 minutes with £50. Once set up, you choose what to invest in, with some banks and online advisers offering recommendations based on your goals," said Holly Mackay of Boring Money. "Find a simple collection of investments that is spread widely. Beginners should look for one simple investment solution that is well diversified." Mackay highlighted platforms such as Monzo, JP Morgan Personal Investing, and Moneybox.
