Protecting Yourself

Nobody wants to think about this. But the women who do think about it are the ones whose families are protected when something goes wrong. These documents take an afternoon to sort out and last a lifetime.

A will. If you don't have a will, your assets will be distributed according to the rules of intestacy — which may not match your wishes at all. If you're divorced, your ex-spouse is no longer a beneficiary under intestacy rules. But if you're separated but not yet divorced, they may still be. A basic will can be done through a solicitor for £150–£300, or through a will-writing service for less. Many charities run free will-writing months (search "free will month UK"). If you have children, your will is where you name their guardian — the person who would care for them if something happened to you. This alone makes it essential.

Important: Marriage revokes an existing will in England and Wales. Divorce does not automatically revoke a will — it just removes your ex as a beneficiary. If you've been through either, check whether your current will still reflects your wishes.

Lasting Power of Attorney (LPA). This authorises someone you trust to make decisions on your behalf if you become unable to — either about your finances or your health and welfare. Without one, your family would need to apply to the Court of Protection, which is slow, expensive, and stressful. You can set up an LPA yourself through gov.uk/power-of-attorney for £82 per LPA, or through a solicitor. Choose someone you trust absolutely.

Beneficiary nominations. Your pension, life insurance, and some savings accounts allow you to nominate who receives the money if you die. These nominations often override your will — so even if your will says one thing, an outdated beneficiary nomination can send the money elsewhere. After a divorce or separation, check and update every single beneficiary nomination. Your workplace pension, private pension, life insurance, death-in-service benefit, and any investment accounts.

Insurance feels like a waste of money until the day it isn't. For women who are the sole or primary earner — especially single mothers — the right insurance is the difference between a crisis being manageable and a crisis being catastrophic.

Life insurance. If you have children or anyone who depends on your income, life insurance is not optional — it's essential. A simple term life insurance policy (which pays out if you die within a set period) is surprisingly affordable. A healthy 35-year-old woman can typically get £200,000 of cover for twenty years for around £10–£15 a month. Write the policy in trust so it pays out quickly and doesn't count toward inheritance tax. If you have a mortgage, make sure you have enough cover to pay it off.

Income protection. This is the insurance most people don't have and most people need. It pays a percentage of your income (typically 50–70%) if you can't work due to illness or injury. Unlike sick pay, which typically runs out after a few months, income protection can pay until you recover or until retirement. It's more expensive than life insurance but protects against a far more likely event — long-term illness happens to one in four people during their working life.

Check what you already have. Before buying anything new, check what your employer provides. Many workplaces offer death-in-service benefit (typically 2–4 times salary), group income protection, and private medical insurance. These are often worth thousands of pounds a year and cost you nothing. Make sure you're enrolled and your beneficiaries are up to date.

What you can probably skip: payment protection insurance on individual credit cards or loans (expensive for what you get), gadget insurance (usually not worth it), and extended warranties on appliances.

Pensions are the area where women are most disadvantaged — and most in the dark. Women in the UK have average pension pots 40% smaller than men's, partly because of career breaks for childcare, part-time work, and lower lifetime earnings. If you've been through a divorce, pension splitting may not have happened — and if it didn't, you may have lost your share of a significant asset.

What you need to know right now:

The most important thing about pensions is time. Every year you delay costs you significantly — because compound growth means early contributions are worth far more than later ones. Even small increases now make a dramatic difference at retirement.

Financial trouble rarely arrives suddenly. It builds through small signs that, if caught early, can be addressed before they become a crisis. Here are the signals to watch for — not to frighten you, but to keep you honest with yourself.

If you recognise yourself in any of these, it doesn't mean you've failed. It means you're paying attention — which is exactly what this room has taught you to do. Go back to your budget. Revisit your cash flow map. Check in with your emergency cushion. And if it's bigger than that, call StepChange (0800 138 1111). Catching it early is what makes the difference.