Today is International Women’s Day and of the many different categories of woman out there, today we have decided to raise our hats to and salute all the amazing single mums out there.
Parental Financial Responsibilities
It’s really important to secure your children’s future as a parent, which we have mentioned in previous posts, but as a single parent, it’s paramount to also secure their present. You need to instil in them feelings of security and the ability to be self-sufficient and financially independent.
You will have to make financial decisions for your child(ren) and yourself that will impact all of your lifestyles in the present and future. To make sure you are making allowances for the many variables that life throws at you, please read on about the effects of ill health and or injury on your income.
Protecting your income
As a single mum, you may be lucky enough (or worked hard enough) to have a well-paid job, a sickness package and a range of other benefits and perks in place such s a great pension. Most single parents struggle to find job roles to fit around school hours and holiday times, such as shop work, domestic duties or other historically low paid menial jobs. They are then only able to manage financially by claiming Child Tax Credits and Working Tax Credits.
Some parents work part-time and others work full-time, but in doing so have the additional financial strain of very expensive child-care on top. It’s a financial juggling act where you feel as though you are constantly “robbing Peter to pay Paul”, but more and more single mums are going back to work and managing it whilst their children thrive.
The biggest worry is “what if I was unable to work for a period of time due to sickness or ill health”? If you’re extremely lucky you may still be paid your salary while off but unfortunately, most people aren’t. Statutory Sick Pay in the UK is only £92.05 per week and not many people at all would be able to pay their rent or mortgage, utility bills, pay for groceries and other essentials etc with such a drastic reduction in salary.
The only way to ensure that you still have enough money to maintain your families lifestyle and not spiral into out of control debts is to take out an Income Protection Policy. This will provide you with up to 70% of your wages and, dependent on the terms of your policy you will be paid out every month until death, retirement or your return to work. Another benefit of this type of policy is the fact that it is tax-free, so, for example, you were off work due to ill-health, you would be paid this alongside your Statutory Sick Pay.
23% of all families in the UK are single mums and this is a still growing demographic due to there being so many more options and choices available to women these days. There is no longer the level of stigma surrounding single parenthood that there was years ago and the majority of single mums make a conscious decision to do it alone. Bravo!!!
Another rising demographic is that of homelessness. It’s important as a single mum to invest in as much protection against this happening to YOUR family as is financially viable.
We strongly recommend you talk to our knowledgable and friendly team of advisers who can discuss your options with you and provide you with the best solution for your families requirements.
https://www.iquote.online/services/income-protection-insurance/
https://www.statista.com/statistics/281640/lone-parent-families-in-the-united-kingdom-uk-by-gender/