Of course, you were prepared for sleepless nights, colic and 3am nappy changes, but you probably didn’t expect you would need a degree in civil engineering to collapse your buggy, squeeze it into the car, then get it back up again!
And it’s more often than not the mums who pick up the extra work. A recent report by the Institute of Fiscal Studies found that where women earned less than men, they did double the amount of housework during the pandemic and 41% more childcare. Even where they earned more than their partner, they still did 6% more housework and 22% more childcare.1
Ahead of the birth is a great time to talk to your financial advisor about Life Insurance, Income Protection Insurance and Critical Illness Cover.
Protection will ensure the mortgage and bills get paid if disaster strikes. If there is a stay-at-home parent, it will cover them if illness or worse meant they weren’t able to run the house and look after the children. A well set-up package of protection will at least mean that money is one less thing to worry about and help can be arranged if needed.
New parenthood also brings with it more consideration about the future, and it’s an ideal time to consider retirement planning. It may be increasingly tricky to balance the needs of a new family against your own over the long-term. And it’s a harsh reality that having a child will bring with it a raft of new expenses, and have an impact on the amount of money you can save into an ISA or pension – whether you stay at home or work full time.
Pay equality is, of course, improving, but the gender pay gap does increase from age 40 as more women take career breaks or opt to work part time.2 By the same token, the Institute for Fiscal Studies says that by the time a woman’s first child reaches age 20, she is likely to have spent 10 years less in full-time paid work than her male colleagues.3
Recognition and acknowledgement of these challenges can be the biggest step in overcoming them and getting your savings back on track. Talking to an adviser is about getting a helping hand and putting a plan in place that works for you and your family.
The value of an investment with St. James’s Place Wealth Management will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
1 Institute for Fiscal Studies, IFS Deaton Review of Inequalities report, 2021
2 Office for National Statistics, Gender Pay Gap in the UK: 2020
3 Institute for Fiscal Studies, Wage Progression and the Gender Wage Gap: the Causal Impact of Hours of Work, 2018