Althea's Risks in Life & Moments

Althea is 59 years old. Find out about her Financial Life Journey so far, her Risks in Life, Moments That Matter and the decisions she is now facing.

Althea went to university and then started out in marketing. Early in her career she worked full-time. The Gender Pay Gap was wider then, 21% full-time in 1997 (7% today).

Althea decided to marry in her mid-20s and to move in with her husband afterwards. In 1990, the marriage rate for both men and women was 2x the marriage rate today and marrieds expected to stay together.

Althea stopped work when she had her first child. Back then most people thought mothers of pre-school children should stay at home, 64% in 1997 whereas 33% today.

Althea’s pension is a fraction of her husband’s. The value of men’s average pension wealth (excluding the state pension) age 55 to 64 years is 1.5x women’s for people with pension savings, and 2.6x for men and women overall. This gap grows with age to 1.9x and 5.2x in the late 60s and early 70s. This is the Gender Pension Gap.

Like many people Althea had not realised there was such a big gap or thought through the implications on retirement. 5 in 10 men and 7 in 10 women do not know how much pension they have.

She is now back working full-time and re-started saving for her pension. Today, the full-time Gender Pay Gap peaks in the 50s and 60s, impacting savings.

Althea is going through a divorce. The divorce rate over 55 years is rising - up 39% for women and 22% for men since 1990.

She needs to earn but her prospects are far lower than her soon-to-be ex-husband’s. Age 56 plus, future lifetime earnings for men with a degree are almost 2x women’s.

Althea’s Financial Life Journey and future prospects are relevant when considering the divorce agreement, especially pension sharing and dividing property.

It’s quite likely she will live alone in future. More people are living alone driven by increases in women aged 45 to 65 years and men aged 65 to 74 years.

45% of people self fund later life care costs mostly through realising their home. Althea will need to consider her plan – only half of divorced people own property (83% of marrieds).

Thinking about the Risks in Life she experienced on her Financial Life Journey helps Althea to reconcile her financial life today and to consider the Moments That Matter that will shape it tomorrow.