Due to the increase in interest rates over the last couple of years, cash has been a relatively attractive investment however as rates on deposits have started to fall, more investors are again turning to investment portfolios to make their money work harder.

But as the returns fall on cash accounts and short-dated bonds, where can investors turn?

Don’t fall into the reinvestment risk trap
As fixed terms come to an end, many institutions reoffer new terms but with lower rates. After becoming used to decades of very low (or no) interest being offered on savings, it is still easy to find any savings rate above zero attractive – even though we know this is well behind inflation, so the value is going backwards in real terms.

With cash looking less attractive as a long-term option, savvy savers are looking back to the markets to get their money working for the longer term.

But aren’t investments ‘risky’?
Risk is misunderstood and is often confused with volatility. Risk can be more accurately defined as the “chance of permanent loss of capital”, whereas volatility is simply the degree to which investments move up and down.

Although many feel shares in companies are a “risky” investment, if we look back over the past several decades, we can see the chance of permeant loss is very small when investing in high quality “blue-chip” companies such as Apple, Nestle or BP etc.

Volatility is what scares most investors- the ups and the downs. But putting this into perspective, most of us own a home and are aware of what the property market does, it also goes up and down. But unlike with an investment, you don’t have a ticker on your post box telling you the daily price, so you don’t see the volatility and therefore, do not “feel” the risk.

What about returns?
The return you achieve from your portfolio is determined primarily by the composition of the underlying portfolio i.e. the split between shares, bonds and other assets such as property and commodities etc.

Despite the doom and gloom in the world at the moment, markets have done very well over 2023, and whilst cash has offered attractive rates of 5-6%, the S&P500 achieved 24% over 2023.

Longer term returns 
Whilst the returns achieved in 2023 are not guaranteed to continue, if we look back at longer term records, figures from Credit Suisse show that over a 123-year period starting in 1900, shares in developed equity markets have generated returns at 5.1% above inflation and emerging equity markets have achieved 3.8% over inflation.

The Credit Suisse figures also show that shares have outperformed cash (and bonds) in every one of the 21 countries their data covered over that 123-year period. This is quite remarkable given this period covers two world wars, two global pandemics, the great depression, dot-com bubble, and the global financial crisis!

So, shares could be considered lower risk than cash or property because of their proven ability to keep pace with inflation over time and therefore protect your money in real terms.

What steps can you take to maximise your annual investment returns?
The return you receive as investor will be determined by a range of factors and there are certain steps you can take to increase your return expectations:

Select the right funds: The difference in fund performance can be startling e.g. in a recent analysis we carried out of the US equity sector, the top performing funds was up 67% whereas the worst was down -25%!

Review regularly: Whilst a buy and hold approach is one of the most popular strategies for investors, reviews are essential. Not only to ensure your risk level, asset mix and diversification are in line with your objectives, but also to ensure your portfolio remains relevant. Looking over a 40-year period at the FTSE 100, only 24 companies (or arguably 35 including mergers and acquisitions) are still in the index since 1984.

Minimise fees: Ensure you have a clear view of what you are paying. Minimising fund management and advisory costs puts more money back into your portfolio and leads to better net performance. Ensure you check and read all paperwork when making any investments, or even better, get a professional second opinion on value.

Minimise tax: With interest, dividends and capital gains tax at 28% for standard residents (note, 28% capital gains tax does still apply to Non-Habitual Residents), tax is one of the biggest eroders of investment return. So, give some thought to how you hold your portfolio and take advantage of the different tax “wrappers” available to Portuguese tax residents, but keep an eye on fees and only seek advice from qualified advisers.

With the ending of the 10 year tax incentivised Non-Habitual Residence scheme (NHR) as at 31st December 2023, many are now reassessing their plans to move to Portugal and existing residents are also asking how the changes affect their plans.

Existing NHRs unaffected
Individuals with NHR status will not be affected and will continue to enjoy the benefits under the scheme until the 10-year period ends. But these individuals should taking advantage of the unique opportunity and tax plan for the future, even if Portugal is not a permanent move there are opportunities to wash out capital gains or draw lump sums at potentially lower rates than other countries.

Transitional NHR rules
NHR is still open to individuals who qualify under the transitional rules and applications are open until the end of 2024. The criteria are:

1. On 31st December you meet the conditions to qualify as a Portuguese tax resident, or

2. You become Portuguese resident by 31st December 2024 and have either:

• work contract or agreement dated prior to 31st December 2023, the duties under which are carried out in Portugal
• property lease signed prior to 10th October 2023
• promissory contract for Portuguese property signed before 10th October 2023
• enrollment of a dependant in education in Portugal by to 10th October 2023
• residence visa or permit valid up until 31st December 2023
• initiation of the process for visa or residence before 31st December 2023

If you are eligible but are not sure whether to push forward with the application, the benefits are very attractive. The main benefits being:

• 0% tax on certain types of foreign source income and capital gains
• 10% tax on foreign pension income
• Lower rates of employment and self employment tax on “high value activities”

NHR 2.0 – the new regime
Although qualifying for the new tax regime is more difficult than the old NHR, the major benefit is that for 10 years there is 0% tax on all foreign source income and gains. The only exceptions to this are income from backlisted jurisdictions or pension income.

The new regime is open from 1st January 2024 and the main qualifying criteria are:

• Not tax resident in Portugal in the previous 5 years
• Must become a tax resident in Portugal
• Not have benefited from the NHR regime
• Exercising a qualifying role/activity in Portugal. These are aimed primarily, but not exclusively, in the fields of scientific research and higher education

Expats & the standard regime
If you cannot qualify for either of the two tax schemes, Portugal can still be a financially attractive place to live – there is no wealth tax, inheritance tax or tax on transfer of capital into or out of the country.

Standard rates of income and capital gains tax can be comparable or better than the UK, depending on each person’s situation. It is also possible to establish investment and pension structures as a Portuguese tax resident to benefit from lower rates of tax.

Irrespective of which position you are in, planning is required to put yourself in the best position and it is never too late to start planning. Speak to several suitably qualified professionals, compare fees, and do not be afraid to get a second opinion or a sense check.

There are so many questions, so many concerns, so many areas that need clarifying. Here we dispel some of the most commonly held misconceptions for expats who have chosen to live in Portugal.

1. “I can come and go as I choose”

To determine and maintain your residency in Portugal or any other country, you will need to follow certain rules regarding the amount of time you spend there and your residence could change year on year depending on your circumstances.

For instance, if you want to avoid being subject to UK taxes after leaving, you will need to limit the number of days you spend in the UK. This limit can range from as little as 16 days to as much as 182 days.

2. “I’ve left the UK so I don’t have to pay tax there”

The tax system in the UK is notoriously complex and can have lasting effects on former residents who have not properly cut ties with the country. Despite leaving the UK, you may still be responsible for paying taxes there on income, capital gains, and even after death (inheritance tax).

Additionally, specific types of income and gains continue to be taxable in the UK even after you’ve left. As a result, you may need to file an annual tax return with HMRC in the UK as well as in Portugal.

3. “I’ve left the UK, so I won’t be subject to UK Inheritance Tax (IHT)”

Unlike income tax and capital gains tax, which are usually determined by your residence, your liability for UK IHT is based on your domicile status. This means that even if you no longer live in the UK, you may still be subject to UK IHT if you have a UK domicile of origin.

There are ways to minimise or eliminate your UK IHT liability, but it is a highly complex area and not as simple as setting up an offshore trust, gifting assets or establishing a QNUPS – UK anti-avoidance rules are extensive and highly effective. It’s important to seek specialist tax guidance as early as possible, as any challenges by HMRC will only occur after you’ve passed away.

4. “I report my income in the UK so I don’t have to declare in Portugal, even as a Portuguese resident”

Some assume that they have the flexibility to report their income and gains wherever it yields the greatest financial benefit or where they ‘have always paid taxes’, rather than where they are obligated to pay taxes.

As a resident of Portugal, you are required to declare your worldwide income and gains and pay the appropriate tax in Portugal. You may also be required to declare income and gains in the country where assets are physically held/registered, but there are rules in place in most countries to avoid double taxation.

5. “Non-Habitual Residence (NHR) means I’m not resident in Portugal”

The NHR program is a ten-year tax incentive scheme for new residents of Portugal. The name of the program can be misleading, as it suggests that you are not a resident of Portugal. In reality, NHR is intended for those who have not been tax resident in Portugal in the previous five years, and you must be legally resident in Portugal before you can apply for it.

This can lead to some confusion, causing some people not to apply for the NHR program, or even being discouraged from doing so, despite it being a financially advantageous decision in most cases.

6. “NHR means I’ll pay no tax”

Although the NHR scheme offers the opportunity to attain low or even zero tax rates, it requires careful planning to achieve the optimal outcome. Simply applying for the program is not sufficient, and you must take proactive steps to ensure that you are in the best possible position to benefit from it.

For example, not all foreign income is exempt from taxation, you may need to restructure your income sources to fully utilise planning opportunities, and generally, capital gains are not exempt under NHR.

Becoming a resident of Portugal can result in significant financial and tax benefits, but it is crucial to have a comprehensive understanding of the cross-border complexities involved, such as residency regulations and tax declaration obligations. Only with a clear understanding of these issues can you take full financial advantage and achieve the most favourable outcome.

Good financial planning can protect your family´s future, save money and provide peace of mind. But where do you start? When it comes to living in Portugal, understanding some basic rules, your options and the right questions to ask, can really make the difference.

1. You cannot choose where to pay your taxes. Where you pay tax is based on your tax residency. If you are a tax resident in Portugal, you must declare and pay tax on your worldwide income and gains in Portugal. Tax may also be due in another jurisdiction, but this does not negate your responsibility to also report it in Portugal. For example, if you receive rental income from a UK property, tax is due in the UK but the income is also reportable and taxable in Portugal. You will get a tax credit so you will not pay tax twice, but tax still may be due in both countries.

2. Some individuals believe that if they do not bring assets/income into Portugal, they do not have to report or pay tax on it. This is not the case, as Portugal does not have a remittance basis of tax. All income and gains are taxable in Portugal, irrespective of where they arise.

3. Many UK nationals believe that once they have left the UK, they will no longer be subject to UK Inheritance Tax (IHT). Unfortunately, this is not the case. IHT is based on your domicile, not your residency and losing a UK domicile of origin is a tricky process that requires an individual to sufficiently break ties with the UK, no longer see it as “home” and have the intention to never return. Specialise advice must be sought.

4. “I have to transfer my UK pension overseas”. You do not have to transfer your UK pension overseas if you are resident in Portugal. Whether an overseas transfer is right for you will be dependent on several factors and your objectives. For example, if you intend to drawdown your pension fully, a transfer overseas is likely not required, as this will incur fees and may provide little or no additional benefit. Alternatively, if your pension benefits are close to the new “UK lifetime limit” an overseas transfer may save a lot of potential future taxation.

5. Pensions and taxation. Whilst pension are tax efficient during NHR, post NHR pension income is generally taxed at scale rates. Some individuals claim the 85/15 treatment in Portugal which is reserved for annuities, and whilst may not be picked up on by finances, this is a grey area of planning and if audited the onus is on the individual to prove the type of income payment and the source/contributions.

6. Investing in a QNUPS (Qualifying Non-UK Pension Schemes) or investment bond? The right structure will be dependent on your personal circumstances, but the main difference in taxation between the two is that QNUPS income is always taxable, so you can find yourself paying tax even if no gain has been made or you have made a loss! With a bond, only the gain element is taxable.

7. “Putting assets within a QNUPS will guarantee protection from UK IHT”. Whilst using QNUPS can protect your wealth from UK IHT, this is not guaranteed, and careful planning must be done. HMRC are clear that a QNUPS must be used for pension purposes and not for tax avoidance purposes, otherwise the QNUPS will fail. Putting large portions of your estate in a QNUPS and funding them to a level that is clearly in excess of pension provision needs may be an indication of tax avoidance for HMRC.

8. “As long as I don’t take income from my investments, I won’t pay tax”. Tax is due on an arising basis i.e. when income/dividends are paid or capital gains are realised on sale/switch unless held in a pension, company, trust or investment bond. Therefore, even if you have not physically taken the money out to your bank account, tax is still due.

9. If you are selling your home in Portugal capital gains tax is due on 50% of the gain at scale rates. There is main residence relief if you use 100% of the proceeds to buy a new home or invest the proceeds in a pension or long-term investment, the latter allowing you to release capital and provide a future income.

10. If you are selling a property with an active AL license, or one that was cancelled within 3 years of sale, 95% of the gain is taxable at scale rates. This is often overlooked and an unpleasant surprise on sale.

Many of us are guilty of jumping on the bandwagon when it comes to investing. Maybe you are focused on artificial intelligence this year, or you were sucked into the crypto hype in 2021, and these trends may have left your portfolio looking like a bag of pick n´mix.

Downsides
Whilst diversification is key in any portfolio, too much diversification can also be a problem and often results in an incohesive portfolio without a clear investment strategy. It also requires a lot of effort, time and research, and can even lead to inefficiency and underperformance as you spread yourself too thinly.

Being overweight in certain areas can create risk, and being underweight can be a drag on your portfolio as positions are too small to make a meaningful impact on returns.

It is also easy to duplicate holdings or even end up with a similar allocation of holdings to that of a tracker fund, just at double or triple the cost.

More pitfalls
As humans, we are also prone to biases. The most common ones encountered when investing are:

• Home bias: this is where we focus on investing within our home markets. Many UK advisers are guilty of this, with a weighting towards the UK market rather than a global approach.
• Recency bias: this is the tendency to react and dwell on recent events and forget the long-term patterns and trends.
• Confirmation bias: we often search for evidence that supports our views and see less value in opposing data. A lack of impartiality is likely to have a negative impact.
• Confidence bias: We are inclined to overestimate our skills as investors. Even with all the money, backing and decades of research at their fingertips, professional fund managers often make mistakes. Can we really perform any better with consistency?

Lastly tax efficiency is often overlooked and can have a huge impact on returns when you consider the benefits of compounding over the years. It might cost you capital gains tax to restructure now, but it will save you from an even bigger tax bill in the future.

What next?
If your portfolio is looking a bit haphazard, start as you mean to go on and regularly set time aside to do full reviews. It is much better to do this in one go, rather than bit-by-bit, as it will allow you to look at the portfolio as a whole and remain consistent.

You will want to look at what you are holding. Are you guilty of ´sunk cost fallacy ´and holding on to stagnant holdings or losses in the hope they will recover, meanwhile missing out on returns elsewhere? Or maybe you need to look at new investment opportunities, revisit costs versus performance, or rebalance.

If you are craving simplicity, utilising passive funds that focus of large markets can offer a good low-cost option with returns that even active fund managers often find hard to beat.

What has happened?

The NHR (Non-Habitual Residence) 10 year tax incentivised scheme to new residents will officially end from 1st January 2024.

There is a new 10 year scheme introduced as a result of the 2024 Budget Law that offers benefits to select individuals. This is aimed at attracting those involved in the scientific research and innovation fields and will apply to those with roles in higher education and specific high value sectors.

Key points

Residency obtained after 1st January 2024

Those who obtain Portuguese residence after 1st January 2024 will not be able to apply for the NHR scheme unless you meet one of the transitional criteria below.

Those who cannot claim NHR status will be subject to the standard rates of Portuguese tax.

Transitional rules: applications open until 31st December 2024

Those who become resident in 2024 may still be able to apply for NHR if certain conditions are met. These are individuals with:

• A promise of employment or secondment, or a work contract before 31st December 2023 and where the work is performed in Portugal
• A contract in respect of purchase, lease or use of property in Portugal concluded before 10th October 2023
• A reservation or promissory contract over a property in Portugal before 10th October 2023 i.e. a `contrato-promessa de aquisição de direito real sobre imóvel`
• Enrolment or registration of dependants in education within Portugal before 10th October 2023
• A residence permit or visa obtained prior to 31st December 2023
• A residence or visa process registered with the relevant authority before 31st December 2023

Existing NHR individuals
Those with NHR already will continue to benefit from the scheme until the end of the 10 year period.

Final words
It is expected that there will a high volume of applications for NHR and for embassy appointments so if you can, take action now.

If you do miss the NHR boat, Portugal can still be a very tax efficient place to live however more careful planning will be needed both before and after your move.

In his Autumn Statement, Jeremy Hunt announced the introduction of an Overseas Transfer Charge (OTC) when higher value UK pensions are transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS).

This is to take effect from 6th April 2024.

The implication
Each individual will have an “overseas transfer allowance” of £1,073,100.

Where the transfer to QROPS exceeds this limit, the excess will be taxed at 25%.

The limit applies to the total value of transfers to QROPS, not per scheme.

For example. Mr A has 2 pensions valued at £900,000 and £600,000. He transfers both of these schemes to a QROPS after the new rules have been introduced. The excess above the lifetime limit is £426,900. This excess is taxed at 25%, therefore the tax due is £106,725.

The result
If you are considering a transfer to QROPS and your pension benefits are close to or exceed £1,073,100, this should be done before the introduction of the new rules in April 2024.

If you would like to understand how a transfer to a QROPS could benefit you or if it is appropriate, please do not hesitate to get in touch.

Non-habitual residency (NHR) is a 10-year preferential tax status granted to new residents of Portugal and it has been a major draw to the country for many years.

The announcement at the beginning of October regarding the proposal for the end of NHR in 2024 was unexpected and has caused quite a stir amongst those who had longer-term plans to move to Portugal, as well as for those who may be concerned about the attraction of Portugal going forward.

The new rules have not yet been finalised and much can change before the 29^th November, but what do we know right now?

The end of NHR?
At the time of writing, the proposal is that NHR will be abolished on 31^st December 2023. However, the government has most recently announced a ´transitory NHR regime´ to ease in the new rules throughout 2024. This will guarantee the right of certain individuals to apply for NHR, but interestingly it also leaves the possibility open for the next government (elections to be held early March 2024) to either continue with the abolition, alter the current NHR rules, or maintain NHR in its current state.

Whilst the future of NHR is still very much uncertain, the transition rules mean that instead of a hard end to NHR at the end of 2023, qualifying individuals can still apply for NHR during 2024. This grandfathering in ensures that those who have been strategically planning their move and making life changes will not be left disadvantaged by a sudden withdrawal of the scheme.

Qualifying individuals are those with:

• A promise of employment or secondment, or a work contract before 31^st December 2023 and where the work is performed in Portugal.
• A contract in respect of purchase, lease or use of property in Portugal concluded before 10^th October 2023.
• A reservation or promissory contract over a property in Portugal before 10^th October 2023 i.e. a `contrato-promessa de aquisição de direito real sobre imóvel`.
• Enrolment or registration of dependants in education within Portugal before 10^th October 2023.
• A residence permit or visa obtained prior to 31^st December 2023.
• A residence or visa process registered with the relevant authority before 31^st December 2023.

Recent and new residents
It is expected that there will a high volume of applications, so if you are a recent resident and have not yet applied, if you receive your residency status before 31^st December 2023, or qualify in some other way as detailed above, apply as soon as you can.

Missed the boat?
More careful planning will be needed for those who move after the deadline has passed or do not meet the qualifying criteria.

As always, planning should ideally start in your originating country so you can make a ‘road map’ to take advantage of any windows of opportunity and tax reliefs in both countries. But the need for effective planning will be even more important with the uncertainty and potential end of NHR as new residents will immediately be subject to the standard rates of tax and will not have the grace period of the NHR period to soften the tax blow if restructuring is required.

Some important considerations for individuals in this position still contemplating the move are:

• If still working, there will be no 20% ‘high value’ activity option and earned income will be taxed at scale rates of 14.8% to 48% (plus the potential for solidarity tax at 2.5%/5%). If you can choose how you are remunerated, it may be more beneficial to opt for dividends which are taxed at 28% and do not attract a social security liability.
• For retirees, a change to the low 10% tax on pensions could affect how or when you decide to access your pensions. Standard residents are generally taxed at scale rates, but the ultimate tax basis does depend on the type of pension.
• Those with large investments should look to restructure as interest, dividends and capital gains (on an arising basis i.e. sale/switch of funds, even if not withdrawn), are all taxed at 28%. There are tax-efficient structures available to Portuguese residents that offer a shelter from tax in the accumulation stage and provide more beneficial rates of tax on drawdown.

Current NHRs
One positive is that those with NHR can retain the advantageous tax status but even so, you should begin planning for the end of your NHR. Some important opportunities exist if you are planning to sell foreign property as the gain is tax-exempt during NHR but taxable afterwards, or if you are drawing tax-free dividends, which will be taxable at 28% post-NHR.

Planning now will allow you to time and control your tax position – this may be switching how income is generated, creating tax structures, or realising capital for the future. Leaving it too late may result in an unfavourable and irreversible outcome.

Not all doom and gloom
Regarding the end of NHR, we will just have to wait and see, but even if 2024 does spell the end of the scheme for new arrivers, Portugal can still be a very tax-effective place to live. With the right structuring, many wealthy Portuguese nationals and expats enjoy the same or even lower rates of tax than under NHR.

Covering a wide range of topics, our workshops aim to give you the knowledge
to make good choices in all areas of financial planning, taxation
and organising yourself for life in Portugal.

November workshops: Pensions

8th and 9th November

An informal round table format, we will be discussing issues such as:

• How different types of pensions are taxed in Portugal
• Where tax should be paid on different types of pension income
• Double taxation and how to avoid it
• Drawdown options and the tax implications
• UK pension changes: LTA abolition, impact on taxation
• Tax planning opportunities: Pre-April 2024 planning window
• QROPS & QNUPS: Do you really need one or should you keep your UK pensions?
• How to pass on your pensions and the implications for your beneficiaries
• Open Q&A throughout

December workshops: Inheritance Tax (IHT), Domicile & Succession

5th and 6th December

An informal round table format, we will be discussing issues such as:

• Portuguese & UK inheritance taxes: thresholds, rules and allowances
• Succession laws: UK rules, Portugal and forced heirship, Wills and Brussels IV
• IHT mitigation strategies and planning ideas
• Gifting: thresholds, rule and avoiding IHT clawback
• QNUPS: does it really shelter UK IHT in practice,
• How to protect family wealth, your beneficiaries and bloodline planning
• How to control family wealth during your lifetime and after your demise
• Open Q&A throughout

The workshops are taking place in two wonderful locations –

The Magnolia Hotel (Almancil) & Boavista Golf & Spa (Lagos)

November workshops: Pensions

8th November 2023
Boavista Golf & Spa,
Quinta da Boavista, 8601-901 Lagos
10am – 1pm (with a coffee break)

9th November 2023
Magnolia Hotel,
Estr. Da Quinta Do Lago, 8135-106, Almancil
10am – 1pm (with a coffee break)

December workshops: Inheritance Tax (IHT), Domicile & Succession

5th December 2023
Magnolia Hotel,
Estr. Da Quinta Do Lago, 8135-106, Almancil
10am – 1pm (with a coffee break)

6th December 2023
Boavista Golf & Spa,
Quinta da Boavista, 8601-901 Lagos
10am – 1pm (with a coffee break)

Sign up for the workshops below

It seems strange to think that gender differences can not only affect the way in which we think about managing our finances but the practical needs and requirements too. But with 60% of the UK’s wealth estimated to be in the hands of women by 2025 (a trend seen throughout most countries) being cognisant of these differences will put you – or the women in your life – a step ahead.

What are the issues?
Even today, studies show that despite 85% of women running household finances, over half of women defer to partners to manage and make long term financial decisions. There are several reasons for this, but a lack of confidence saw women shying away from taking a more active role. With 3/4 of women aged 60 either single, widowed or divorced, relying heavily on a partner can leave them disadvantaged.

Women live longer than men and their finances must therefore last longer. Recent ONS statistics predicted a lifespan of 83.1 years for women, and where planning has not been put in place, or put in place with a male’s longevity in mind, women may find themselves struggling in later years.

Women are naturally more cautious and conservative, but over the long term, such investments have lower growth potnential. A YouGov study showed that 55% of women had never held an investment vs. 35% of men.
80% of companies are paying women less than men. A 2021 study by NEST showed that the average working woman could have a pay gap of £70,000 at retirement. Similarly, women are more likely to have taken time out of employment or reduce hours to care of children and/or elderly parents and relatives. These career breaks not only directly affect income, but can affect promotion or progression opportunities. This has a knock on effect on finances and women are seen to have approx. 51% less in retirement savings than their male counter parts.

These factors mean that women must take a different approach to men when thinking about their finances. This is something investment providers are recognising. For example BlackRock, the world’s largest fund manger, has recently launched investment funds geared at women and aimed at addressing and incorporating the issues women face.

What can you do?
Develop your understanding and relationship with money. Ask yourself why you have certain feelings or views around money. What makes you uncomfortable? When do you feel this? Why? Identifying your strengths and weaknesses will help you on your financial journey.

Make time to set goals and develop your financial plan. Your plan should be specific and realistic otherwise you are setting yourself up for failure.

If you are still working, know your worth. Women negotiate less than men when it comes to pay – 33% of women vs. 43% of men. Do your research, demonstrate your value and remember, if you don’t ask you won’t get!

Invest your money. Saving money is one thing, but how do you build wealth for the long term? The single most detrimental impact on savings is inflation. As things get more expensive, your income and savings must also grow to keep up, and cash or bank deposits are not a good inflation hedge. Whilst investing does carry risk, it provides the best opportunity for inflation beating returns in the long run – an opportunity for women to use their longevity in their favour!

Don’t be afraid of investing and use professionals to help you get it right. Statistics show that women make better investors, often achieving better returns than men. A study by Hargreaves Lansdown showed women’s returns outperforming men by 0.81% over 3 years (over 30 years this would result in a portfolio value of 25% more).

If you are already investing ensure that you review things regularly and pay close attention to your investments. It is not uncommon to see portfolios that have not moved in many years due to high fees or poor performance.

Take control and build your financial confidence. This maybe through education or working with professionals, but it will allow you to identify and take advantage of opportunities, achieve financial independence and peace of mind.