Can mums improve their financial planning?

Savings for mums

Whats the plan?

As if being a mother wasn’t hard enough, balancing the financial future of yourself and your children makes it even tougher. So what advice can mothers take on making financial life that little bit easier and protecting their futures?

Having a financial plan is essential, especially when it comes to taking time away to have a child. This can mean women suffer what is known as the “motherhood penalty”, which means they earn less on average compared to their male counterparts in the workplace.

So what can women do to plan ahead for taking time off to look after children?

  1. Putting bigger pension contributions into the pot is a good idea if you can afford it. This will help mitigate any loss from not contributing National Insurance and therefore not being eligible for state pension.
  2. Putting money and life insurance plans into trust is another great idea. This controls where finances go if you die and who they will go to. This can protect it from both Inheritance Tax and the possibility of divorce changing where you originally planned for it to go.
  3. Replace and Review cover such as life, critical illness insurance and even Income protection. It is tempting to assume the breadwinner is the one that needs protecting, but that same person would often have to cover help at home and lose money if the worst was to happen.

Reviewing your insurance:

Firstly don’t assume that you have the best deal around, this can be especially true if your insurance was arranged by a mortgage broker or bank.

Mortgage brokers are often tied to expensive networks, although they got you a great deal on the loan for your mortgage you could be paying over the odds on your insurance. Banks simply charge more for the convenience of doing it in the branch safe in the knowledge you are not shopping around.

Here are some simple questions to ask yourself:

Can I get the same level of cover for less?

Because My Insurance Hub heavily discounts the commission that the insurers normally pay, they are able to offer much lower prices to you.

Have my circumstances changed since i setup my existing cover?

If you have re-mortgaged or moved home since you setup your plan its very likely your insurance policies need adjusting. This is also true if you have changed jobs, had more children or any other significant life event since purchasing your insurance.

Do I “need” all the cover i am paying for?

Sometimes by making simple adjustments to cover substantial savings can be made, we can help you identify any areas where you might be paying over the odds.

Get Advice:

To talk to a qualified advisor about hwo to protect your family and save money give us a call on 0800 024 8685.

If you have a good idea what you are after you can check for life insurance and other policies online using our easy to use tool here: