Welcome to our #201 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we cover the gender pension gap and a recent report which forecasts that women’s weekly income will be half of their male peers, by 2045.
The gender pension gap in private pensions is currently estimated at 35%, according to the Department of Work and Pensions.
It’s never been more critical for women to engage and take ownership of their financial future.
And The Purse Podcast is celebrating 100 episodes since launch!
Thank you to all of my listeners and for being on this journey with me. To celebrate, I decided to record an audio journal so I could share my journey with you and to talk about what led me to founding the The Purse and The Purse Podcast. Please enjoy!
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And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Gender pension gap: women to take home half of weekly income by 2045 (compared to men)
A report forecasts that the gender pension gap will remain at 35%+ for 20 years.
According to a report, women’s workplace pensions are forecast to narrow only slightly to men’s in the next 20 years, as per The Financial Times.
And whilst an improvement is expected in women’s state pensions, Lane Clarke & Peacock has projected that women will take home a weekly income of half the size of their male peers by 2045 due to the shortfall in private pensions.
The gender pension gap in private pensions is currently estimated at 35%, according to the Department of Work and Pensions.
As we know, this can be largely attributed to:
the gender pay gap
women have less disposable income to save and invest
women interrupting their career to start a family
rejoining the workplace on a part-time basis or on a reduced full-time salary
(later) shouldering elderly care
and many leaving the workforce early.
Many women leave the workplace in their 50s because of the menopause. Ironically, this is often at the peak of their career when, in theory, women should be maximising pension contributions.
For this reason, many women are at risk of losing out to a comfortable retirement. And in some cases, without the necessary support, they may fall into poverty.
The data shows that older women who might be widowed or unattached, perhaps have been a single parent, have higher poverty rates than men.
Not only do women form three-quarters of those excluded from automatic enrolment because they earn below £10,000 per year, but when a marriage breaks down, women do not usually receive a percentage of their partners’ pensions.
Although it depends on how a divorce is negotiated, private pensions are often ‘forgotten’ by lawyers, and many do not properly evaluate the size of a pension pot.
According to Office for National Statistics, pensions are often the biggest marital asset after property, making up 42% of household wealth.
Research published by the Institute for Fiscal Studies, has said more support was needed for women on maternity leave, including measures to boost child benefits to support parents. Much of the pension difference still hinges on issues in the labour market.
However, whilst childcare affordability is an issue in the UK, so is the low take up by fathers of shared parental leave. This was estimated at only 2-8% in 2019.
Societal and gender norms continue to influence who takes up the majority of childcare, which affects women’s financial health in the long-term.
It’s never been more critical for women to engage and take ownership of their financial future.
What next? (Re) read these articles on The Purse:
News in Brief
Financial news
China has cut its holdings in US Treasuries to $835bn, lowest level since 2010.
The valuation of S&P 500 has become cheaper but attractiveness vs interest rates has decreased massively as US 10 year real yields now at almost 2%.
Oil prices have risen to the highest level since November. If you're looking for an explanation as to why US bond yields suddenly rose again on Friday, here's one.
Fed terminal rate nudged higher following Powell's Jackson Hole speech. Markets are now pricing in another 15bps of rate hikes.
US jobs market continues to slow. Unemployment rate jumped to 3.8% as household survey showed the number of unemployed people up 514k.
Eurozone inflation remained stuck at 5.3% in August, higher than the 5.1% that economists expected.
Eurozone M2 money supply shrinks at an increased rate. M2 money supply shrank 1.4% in July, most in history, in a promising sign for inflation.
UK economy recovered to pre-pandemic level in 2021 - earlier than thought. The ONS has revised up GDP growth in 2021 by 0.9 percentage points to an 8.5% increase.
The KBW Bank Index fell by 8.8% in August, the weakest bank in the index is Citi w/-13.4%.
Growth stocks are missing in Europe: that's why European indices are trading like value stocks.
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin jumps as court clears way for Bitcoin ETF: Grayscale Investments could soon convert its Bitcoin Trust product into an ETF. However BTC has since dropped sue to SEC’s delay in approving the spot BTC ETF. (Currently trading ay $25,900+)
Ether’s rebound off the strong support at $1,626 fizzled out at $1,745 on Aug. 29. This indicates that bears remain active at higher levels.
SEC delays spot Bitcoin ETF decision for all applicants including BlackRock, Fidelity, until October.
In an Aug. 30 post on X (formerly Twitter), Bloomberg senior ETF analyst Eric Balchunas bumped up the approval possibility of a spot Bitcoin ETF from 65% to 75%.
Vitalik sells MakerDAO stake after CEO Christensen suggests Solana-based blockchain.
Cathie Wood bullish on Bitcoin and AI convergence. The ARK Invest CEO shares her views on the intersection of Bitcoin and artificial intelligence, highlighting its economic implications.
The Purse Podcast
To celebrate 100 podcasts, Jana Hlistova talks about:
Her background
Women's economic empowerment
Why start The Purse and The Purse Podcast
Fundraising as a female founder
Women, money & investing
Startup failure
The financial services industry
Women investors
Money lessons learnt
Please enjoy! Listen on Apple Podcasts and Spotify+
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka.
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