Lockdown has left many with more time spent at home and has triggered a large spring clean out for a huge number of households.
Raking through hole-ridden jumpers and dated dresses that are no longer quite an appropriate length and handing them over to the charity bin is cathartic.
But actually, taking the time to apply the same treatment to our finances can be considerably better for us.
In this episode of the Women and Money podcast, Sarah Davidson, knowledge and product editor of This is Money, and Maike Currie, investment director at Fidelity International, talk to PensionBee founder and chief executive Romi Savova about what women can and should be using lockdown to do with their finances.
Millions of women across the UK remain on furlough or scraping by on a much reduced income when they’re self-employed
We talk about the positive effect that decluttering your life can have on your mental health – particularly at a time when we’re all feeling a lack of control over our independence during lockdown.
With millions of women across the UK remain on furlough or scraping by on a much reduced income when they’re self-employed, the lack of control we are feeling about our finances and future income security can be intense.
LISTEN TO THE PODCAST:
Research by Westfield Health found that just 27 per cent of parents believe their personal finances will improve in the coming months while 66 per cent of furloughed parents have seen their mental health deteriorate in the past months.
A frightening 68 per cent are worried about losing their job and say their stresses are largely down to loss of routine and financial concerns.
While there are things about our finances we can’t control at the moment, there are things we can do to help.
Simple steps like reviewing the subscriptions you pay and cancelling those you don’t use, seeing whether you can switch energy providers, home insurers, car breakdown cover, your mobile and broadband contracts – these can all save you hundreds of pounds a year if you’re diligent about checking for the best deals.
>> Read This is Money’s review of the apps that can help you sort your finances with minimal fuss and effort for more on how to automate switching.
This is Money’s Sarah Davidson
But what about women specifically?
Women are already at a financial disadvantage to men, with the gender pay gap persisting in most sectors and companies in the UK.
Now research by Fidelity shows that lockdown has hit women disproportionately hard.
Pre-coronavirus the financial challenge for women was an almost 11 per cent gender pension gap – a result of women taking career gaps or part-time work to care for children or elderly relatives, as well as the gender pay gap.
While Covid-19 has affected all of us, reports show that more than 78 per cent of those who have lost their jobs since the crisis began are women.
And despite more women in the workplace than ever before, the majority of women’s roles tend to be taken up within the retail and hospitality sector – two of the worst hit industries.
For those who have been more fortunate, the fact we’ve all been stuck at home for three months means those who are still working have actually saved money.
A survey by Hargreaves Lansdown carried out in June found that 45 per cent of people have been spending less than usual during the crisis, and 15 per cent have been spending much less.
Men have saved an average of £652 and women £515 since the start of lockdown
Of those of us who have spent less during the crisis, we’ve saved an average of £581. Men have saved an average of £652 and women £515 since the start of lockdown.
What to do with this cash? Savings rates are shoddy, but should you be investing when the stock market is volatile? Up one day, plummeting the next.
If you’ve seen your pension fund value fall through the floor, do you up your contributions or sit out for a while?
Maike, Romi and Sarah discuss how to make the most of these savings – especially at a time when uncertainty about the economy is so overwhelming.
Fidelity’s research found that just by saving an extra £35 a month into their pension, a woman could close the gender pension gap by the time they reach retirement age.
To find out about this and more, listen to the podcast:
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.