How cashflow modelling could help your female divorced clients retire with confidence
On average, women enter retirement with significantly less money than men. New research by the Trades Union Congress (TUC; 21 August 2025) has revealed that there is a 36.5% income gap between men and women in retirement, equivalent to a difference of £7,600 a year on average.
Effectively, this means that retired women could have a pension shortfall equivalent to four months’ income compared to men.
Moreover, Legal & General (2 April 2025) has reported that women see their household income cut in half in the year following a divorce, potentially making it harder for them to save for retirement.
As such, your female clients need to plan carefully for later life while they’re still earning.
However, according to a survey by Unbiased (22 July 2025), women are less likely to seek financial advice than men. The survey found that 69% of female respondents had never received financial advice, compared with 64% of men.
Without expert guidance and support, the prospect of leaving work behind could be a source of uncertainty and financial worry.
Read on to learn how I can use sophisticated cashflow modelling software to remove the guesswork from retirement planning and help your female divorced clients look to the future with confidence.
Cashflow modelling is a powerful tool for helping your clients visualise their financial future
Cashflow modelling is a visual, data-driven forecast of an individual’s financial future. It is the foundation of my unique Visualise Your Future planning process. This is how it works:
- Input relevant client data: such as income, expenditure, assets, liabilities, and goals.
- Apply assumptions: including expected investment returns, life expectancy, inflation rate, and tax rules.
- Run projections: the software forecasts your clients’ financial future based on the data entered.
This simple yet highly effective process allows me to give female divorcing clients a clear picture of:
- Their retirement income needs, based on their circumstances and goals
- The potential effect of different life events on their retirement finances
- How inflation, investment returns, and outstanding liabilities could affect their wealth
- When they could afford to retire.
Incorporating this technology at every stage of the process allows me to simplify complex financial concepts and empower clients to take control of their financial situation.
3 important ways cashflow planning can help your female divorced clients prepare for retirement
Cashflow modelling can provide clarity, understanding and peace of mind at a time when your clients may be feeling confused about their future.
For divorced clients, it offers three key benefits:
1. Build confidence by identifying and addressing potential shortfalls
Research findings published by Which? (8 February 2025) show that half of UK adults aged over 55 are worried about running out of money in retirement.
Cashflow planning could alleviate this concern by identifying potential shortfalls, allowing your clients to take decisive action to address these issues and build the retirement fund they need.
For example, they might choose to increase their pension contributions or retire later. Additionally, women who have taken career breaks may want to explore the possibility of topping up their National Insurance record to bolster their State Pension entitlement.
A financial expert can also help your clients review their retirement goals and make the most of the wealth they have.
In other words, cashflow modelling can give your clients the insight they need to take control of their finances, both now and in the future.
2. Provide clarity on how to use their financial settlement to support them in retirement
Receiving a financial settlement might be a relief to your divorcing clients, but they may also feel uncertain about how to make the most of this wealth – especially if they receive a substantial amount.
They might ask themselves questions such as:
- “How much income can I afford to withdraw?”
- “Should I save, invest, or boost my pension?”
- “Will this money last the rest of my life?”
A financial expert can use cashflow modelling to provide personalised financial projections that reduce such uncertainties and concerns.
This involves modelling different ways of using a settlement, which could help your clients weigh up their options.
For example, cashflow modelling can show your clients how much more income they might have in retirement if they use some of their settlement funds to boost their pension – taking into account the effect of tax relief and compounding.
In contrast, this advanced software could provide a clear picture of how inflation might affect the spending power of their cash savings.
Running these “what if?” projections side-by-side may help your clients use their divorce settlement in a way that balances their short- and long-term needs.
3. Offer security and peace of mind by keeping their plans on track
Life is full of twists and turns. As such, no one can predict what’s around the corner. That’s why regular financial reviews using cashflow modelling are essential if your clients want to keep their retirement plans on track.
An unexpected job loss, illness, or financial windfall could significantly alter your clients’ circumstances and long-term goals.
That’s why I am committed to building long-term relationships with my clients. By checking in regularly, I can help them adapt to change and prepare for unexpected financial shocks. This can ensure your clients continue progressing towards their retirement goals and have confidence in their future.
Get in touch
If you’d like to know more about how I can use cashflow modelling to support you and your clients with their retirement plans, I’d love to hear from you.
To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300 889138.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate cashflow planning or tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Approved by 2plan wealth management Ltd 5/11/25.