Latest news with #financialvulnerability
Times
11 hours ago
- Business
- Times
Menopause ‘leaves divorcing women financially vulnerable'
Menopausal women are getting a rough deal in divorce settlements, with one lawyer proposing that couples should agree to a 'meno-nup' that would make break-ups fairer. While fewer couples are getting divorced in the UK, the figure is growing for 'silver splitters' — those separating in later middle age or older. Figures from the Office for National Statistics show a spike in divorce rates between the ages of 45 and 55 — and the number of over-60s separating has doubled since 1993. Farhana Shahzady, a solicitor at the firm Beck Fitzgerald, suggests that the menopause is leaving some women facing financial vulnerability after divorce. Shahzady argues that family law is 'menopause blind' and that there are financial barriers for women experiencing the condition during divorce or separation, which are routinely being ignored.
Yahoo
6 days ago
- Business
- Yahoo
'Financial fragility is deepening': Canadian credit card data for Q1 show growing strain
Signs of deteriorating credit health among the most financially vulnerable Canadians are a 'flashing signal,' credit analytics firm FICO says. New credit card data for the first quarter of 2025 show an increasing reliance on credit cards and more Canadians having trouble paying their balances, FICO says, with issues most pronounced among younger and 'thin-file' borrowers — people without much of a credit history. 'Consumers with fewer banking relationships — particularly younger individuals or those relying solely on credit products — are under increasing pressure,' FICO's report says. 'The surge in serious delinquencies among monoline borrowers' — people with credit cards issued by firms that don't offer other banking services — 'is a flashing signal: financial fragility is deepening where there is the least cushion.' Economists at financial institutions and the Bank of Canada (BoC) have been paying close attention to Canadians' spending and credit health as ongoing trade tensions with the U.S. roil the economy. In a speech in early June, BoC deputy governor Sharon Kozicki noted that credit card data is one way the Bank can better understand Canadians' 'real-time spending patterns.' FICO's data show Canadians are paying down less of their credit card balances on average, and note that 'average balances remain elevated' and are rising again from COVID-era lows, when spending was generally restrained. On average, Canadians repaid just over 47 per cent of their balances in March, down from a pandemic peak of 60 per cent in September 2022. Balances have risen to $3,098 from $2,938 during the pandemic. 'Although still below pre-pandemic highs, the recent upward trajectory signals renewed pressure on household finances, potentially from rising living costs or shifting spending habits,' FICO's report said. FICO notes that the rising balances aren't a consequence of higher spending — average monthly spending was down 4.2 per cent from the same period last year, to $1,549, which FICO says 'reflects more cautious consumer behaviour or financial constraint as households rebalance their budgets.' Overall, rates of missed payments are 'broadly stable,' FICO says, but risks are concentrated in some borrower segments. Those missing a single payment was up eight per cent from last year, which FICO says 'points to the beginning of strain among a growing portion of the population.' Among monoline borrowers, who can have lower credit ratings, FICO notes a 'key turning point' in January, when the proportion missing two or more payments hit a five-year high. 'This spike highlights sustained pressure on higher-risk segments — particularly those with limited financial history, fewer products with a financial institution, or recent entry into the credit market,' FICO's report says. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on X @jmacf. Download the Yahoo Finance app, available for Apple and Android.
Reuters
15-05-2025
- Business
- Reuters
One in 10 people in Britain have zero savings, FCA says
LONDON, May 16 (Reuters) - One in 10 people in Britain have zero cash savings to draw on in an emergency, according to figures published on Friday by the UK's top financial watchdog, in findings that underscore the financial vulnerability of millions. The Financial Conduct Authority said another 21% of people have less than 1,000 pounds ($1,332) in savings and that 1.6 million, or 3% of homeowners, had received support from mortgage or credit lenders to manage repayments in the last two years. The data makes sobering reading for Britain's banks and the policymakers tasked with steering a UK economy rattled by inflation, a cooling jobs market and the threat of a global trade war sparked by U.S. President Donald Trump's tariff hikes. The Bank of England's Monetary Policy Committee was split three ways on its May interest rate decision, seven of the nine members backing cuts to reduce the cost of borrowing and keep the economy on track. Almost two-fifths of adults have unsecured debts, with a median amount of 2,500 pounds, the FCA said. "Our data shows that finances are stretched for many - with some unable to save for a rainy day. And we know that some do not have the confidence to invest," said Sarah Pritchard, Executive Director of Consumers and Competition at the FCA. The FCA's survey also found that one-third of adults with a defined contribution pension have less than 10,000 pounds saved, while another 12% didn't know the size of their retirement pots. Only 8.6% of people received financial advice on investments, pensions or retirement planning in the previous 12 months and around 900,000 adults were classed as "unbanked" in 2024, although this was down from 1.1 million in 2022. The FCA said it was working to improve access to financial services help, guidance and advice so that people struggling with debts can build a more financially resilient future. "The FCA's Financial Lives Survey lays bare the financial tightrope that millions are walking," Rachael Griffin, tax and financial planning expert at Quilter, said. "It speaks to a broader cultural reluctance to invest, and perhaps to a lack of confidence or understanding in navigating financial markets," she added. ($1 = 0.7510 pounds)
