Pensions for women: It's never too late to start planning

Sonya Lennon, Standard Life’s ‘Second Life’ mentor, is as fabulous in person as you might imagine.

Arriving at the lobby of Vienna Woods Hotel last Friday, she was dressed beautifully in her own design, with two perfectly matching accessories: energy and warmth. Lennon was there to discuss women and pensions, a topic about which she’s ionate.

Her devotion to women’s financial wellbeing is well established. Through one of her four organisations, Work Equal, she has ed thousands of women in the workplace since 2016.

She understands that seeking financial advice is an ongoing issue for women. According to Standard Life, 62% of women report feeling anxious about their finances, compared to 42% of men.

Pensions are a problematic piece of the gender jigsaw. Indeed, according to research, two in five women are concerned they won’t be able to retire, versus 33% of men.

“Historically, men took control, and women were very vulnerable in the face of sudden separation or death, left high and dry, and in the worst circumstance with no access to s,” says Sonya.

“Conversely, however, even if men control the finances, it is often the women who stress about the istration of money, whether there is enough money for schoolbooks. They live in the trenches of the finances. It’s important that we take a shared responsibility.”

A Cultural Problem

Beyond gender, exuberant entrepreneur Sonya believes our reluctance to talk about money is a distinctly Irish characteristic.

“We need to look at how we position pensions and retirement in this country. We are not comfortable talking about money. We view it as ‘icky’. Historically, we would have been conscious of people thinking we’d ‘notions’. We find it difficult to be plain-speaking about achieve-ments and tend to be self-effacing.”

Sonya also points out how generous we are, but contends that we must start with looking after ourselves, especially now that we are living longer.

“Our expectations of our elder years have changed; there is much more awareness of the need to be fit and healthy, flexible, and strong. We invest in our futures across every aspect, like lifting weights to stay mobile. We also need to look at what we are doing to prepare financially.”

Throughout our conversation, and later at the Pensions for Women event, held by Standard Life, the word retirement is replaced by ‘second life’. This viewpoint, also espoused by Lennon, is optimistic and exciting, far from the usual approach associated with personal finance.

“What I love about Standard Life is the lens,” she says. “It is not about the money or the pot. It is about asking what you want that time of life to be. What does your second life look like? It is about preparing a mindset. There is no prescription here – it’s flexible.”

The approach Sonya Lennon takes is a simple one.

“The best time to plant a tree is a hundred years ago or today. It is never too late to plan from where you are.”

Later at the event, she talks about ‘shifting the A’.

“We start with anxiety and apprehension. We live with low-level anxiety about our finances. We move to awareness. Then we arrive at ability. We realise that we are in charge of our own futures. Then we get to action, which is when the good stuff happens.”

The impediment to action, says Lennon, is fear.

“We often have a kind of dawning around our forties. Thinking, ‘Oh I really should have done more…’ When that thought presents itself, it might not be as bad as we think it is. It wakes us up at three in the morning. One of the things that stops people is not knowing where to turn.”

Relationships and advice

Relationships are key, the fashion designer says.

In fact, she recently sat down with her dad. They both mapped out his plan for 100 years of life.

“The conversation was about what he has and what he wants to do. It’s important to plan for 100 years so you don’t run out. I saw the relief in my dad’s face. We all carry around a low-level anxiety about this stuff. It makes us paralysed to do anything.”

It was her dad who first nudged her towards financial peace of mind.

“He taught me that it’s never too early and never too late. He worked in the bank. When I decided I wanted to go freelance at 21, he said fine, so long as you give money into a tiny pension. Knowing it was there, percolating, helped.”

Her mother also taught her about the need to have financial independence.

“She was a career woman who always worked. She taught me not to rely on anyone else, something that has seeped in deep into my core. That control is important.”

Relationships are fundamental to women, and so they will be the source of finding financial help. Sonya suggests that we all have a friend who makes the smart choices, whether it’s about the latest deal or the savviest holiday plans. That friend can help.

“Again, if you can tap into word of mouth, like you would with anything, you can get help. People are worried that financial advisors are only into selling stuff, but a good advisor is more interested in you, and what you’re looking for. The product comes second. If you don’t feel comfortable with the advisor, they are not the right advisor for you.”

Afternoon Session

After my chat with Sonya, I attend the Standard Life ‘Women in Pensions’ event. It is consistent in tone, centring on the role of conversations and relationships in securing pensions that work for women.

Fittingly, the session is a chat between Sonya and Non-Executive Director of Standard Life International, Ann Kelleher, who Sonya praises for her “honesty and openness”. It is an engagingly informal chat about Ann’s career journey, her approach to planning for her retirement, and life lessons she’s learned along the way. It feels a bit like a group for women, just on the topic of pensions, with founder of The Menopause Hub, Loretta Dignam, in attendance, ready to share insights and top tips.

All speakers share their belief that we all have a friend who can guide us through our personal finances and towards the right advisors. Through recommendations, we can find our way towards a pension that works best for us.

Dee White, hosting the event, ing the conversation, asks: “How many of you has a woman in your life who could ask for advice?”

Scanning the room, she takes in the raised hands at every table.

“That’s nearly all of you. That’s how I found the person who was right for me, when someone I trusted gave me a referral.”

Throughout the event, references are made to their new Standard Life podcast series, with Sonya as host, appropriately developed to be shared with “family and friends”.

The ultimate guide for Women and Pensions podcast - brought to you by Standard Life | Standard Life Ireland (podbean.com)