Financial Insecurity for Women in Ireland

by | Dec 14, 2022 | Life Insurance & Protection

According to a comprehensive study conducted by one of Ireland’s leading life companies, it has become clear that only around half of the women in this country possess sufficient financial security.
Whilst they say the country, we would concur with this statement in terms of the Women in Donegal. We have been stressing this point for years.

According to a report from Irish Life, only 45% of women hold the necessary life insurance, specified illness cover, or income protection policies that could aid them in times of economic & financial hardship. Disturbingly, this falls far behind men who have such coverage – two-thirds according to research conducted by Coyne Research. Clearly, there is an urgent need for more women to secure these financial safety nets and ensure their well-being during trying times.

Sarah Kelly, Senior Manager for Protection at Irish Life Retail, recently expressed her concern regarding the alarming scarcity of financial protection for women in Ireland. She firmly believes that it is essential for all women to assess their own needs and devise ways to safeguard themselves and their families against any unforeseen circumstances.

“We need to make women in Ireland more aware of the real benefits of life insurance and specified Illness cover, as it can be a lifeline for them and their families in times of difficulty,” said Mrs. Kelly.

“Women are typically more proactive when it comes to having these conversations but they don’t have the policies in place.”

Irish Life’s claims report also revealed that only one-third of life insurance claims that the group paid out last year were to women, and the majority of specified illness claims (53%) were also paid to men.

This is reiterated in very recent research showing that 41% of younger women reported finding it difficult to manage money, compared with 29% overall – BPFI research (2022).

What about self-employed women?

CWM Wealth Management Ltd (County Cork) carried out a detailed survey to take a closer look at this demographic. The survey interviewed 106 self-employed professional women and found that:

  • Just 47% of people had private pension plans in place, with 45% having policies from previous employment contracts that they never reviewed.
  • A staggering 52% had no idea about how their pensions were performing or what value they would have during retirement.
  • 50% of those surveyed did not have appropriate life cover in place and over 70% were unaware of the advantages of same.
  • Only a mere 20% of respondents had appropriate income protection cover in place.

Why are women not financially protecting themselves?

The most common reason women are not securing financial protection is a lack of knowledge and understanding of how insurance products work. A recent study by Insurance Ireland revealed that 35% of people do not understand what insurance policies cover, with women reporting higher levels of confusion than men (40%).

Additionally, some women may be under the assumption that their partner’s life insurance policy will be sufficient to cover them in the event of an emergency. However, this is not the case as a joint policy does not protect both people equally. For co-habiting couples or civil partnerships, each person should have their own policy and they might not be covered if the other partner dies.

It is essential that women in Donegal and across Ireland become more aware of their financial security needs, as failing to do so could leave them vulnerable in times of crisis or during retirement.
So, whether you are in Buncrana or Bundoran, seek advice. Knowledge is always the best way to start

What can women do to financially protect themselves?

The results of the study are concerning, but there are things that women can do to ensure their economic security and protect themselves financially.

1) Review your retirement contributions

Firstly, review your pension plan: Evaluate the performance of any existing pensions and ascertain if they will be sufficient for your retirement. If not, consider organising a private pension plan in order to ensure a comfortable retirement.

2) Take out life insurance

Women should also look into taking out a life insurance policy to ensure that the financial security of their loved ones is maintained in the event of untimely death – this can be invaluable, especially to those who are single parents.

Life insurance premiums can start as cheap as €10 per month. The cost or costs is/are dependent on a number of factors including the level of coverage needed.

3) Protect your greatest asset: your ability to earn an income

Finally, income protection is one of the greatest investments you can make. All your financial goals and aspirations are based on your income continuing, but what happens if it doesn’t?

The Income Protection policy provides financial security in the event of illness or injury, allowing you to receive up to 70% of your salary while you are unable to work.

It is important that Donegal women understand the level of coverage they need. It is also important to have a realistic idea of how much income you need when unable to work.

It’s evident that women in Donegal and Ireland in general lack the financial security they require. In order to safeguard their loved ones and themselves against whatever life throws at them, women need to take action. By having realistic expectations, understanding the value of insurance policies, and taking appropriate steps, females can guarantee economic protection for all those around them – including themselves.

Our Advice

As always, we recommend a holistic financial plan that would deal with all areas of financial planning and we always recommend you seek advice from trusted Financial Advisors.

If you need advice or have any questions, don’t hesitate to give us a call.

If you have questions or need Financial Advice on Insurance, Protection & Security, call 074 9103938 or email now.

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Talk to us now and make an appointment with one of our Letterkenny team of QFAs. We are here to help with your Financial Planning Concerns. Ask us questions on Retirement & Pension, Life Insurance & Protection, Mortgages, and Investment Advice. Get in touch here or give us a call at 074 91 03938.

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