200 YEARS OF WOMEN AND F INANCE

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This year marks 200 years since the establishment of Scottish Widows.

Starting in an Edinburgh coffee house in 1815 to support the huge number of women left widowed in Scotland after the Napoleonic Wars, Scottish Widows has always put women at the front and centre of what we do, providing reassurance and peace of mind for more than two million women, and 200 years on, our purpose remains. Our heritage and unrivalled focus on women is illustrated in the symbol of our living icon, the cloaked Widow.

HELPING WOMEN PLAN EFFECTIVELY FOR THE FUTURE

In more recent years, we have turned our focus to supporting women and the unique challenges they face when it comes to saving for the future and wider finances. In 2014 we released the 10th Scottish Widows’ Women and Retirement Report, which gave us a decade of comparable data, showing how women are preparing for the future compared to their male counterparts.

While the number of women preparing adequately for retirement has reached a record high in the past 12 months, the report found that there is still some way to go to close the gender savings gap. Women put aside on average 30% less a month for retirement than men, largely due to barriers such as ongoing differences in pay, or a greater tendency towards part-time working and career breaks.

Behavioural factors, such as risk appetite, also have an important role to play. Calculations produced by Scottish Widows last year found that the differing ways in which men and women choose to save – and how the system rewards and incentivises this behaviour – means that even when men and women save the same over a 40-year period, men can end up between £33,000 and £89,000 better off.

REVISITING HISTORY: NAPOLEONIC WAR VETERANS AND THEIR DESCENDANTS

The 200-year milestone offered the ideal opportunity to take stock of our journey since the Edinburgh coffee house gathering to devise a plan for making provision for the Widows and dependants of local men lost in the Napoleonic wars.

For this reason, we have set out on a ‘Who Do You Think You Are’-style quest of discovery, working with genealogist Kirsty Gray to identify some of the men who lost their lives around the year 1815 when Scottish Widows began. The objective was to understand more about the women and families and the challenges they faced, with the hope of identifying living descendants.

WOMEN AND FINANCE: THE PRESENT AND FUTURE

As well as looking back, it is important to look at the present and future for women to see how we can best support them in our bi-centenary year and beyond. Throughout the course of Scottish Widows’ 200 years of history, the outlook for women and their financial priorities have evolved significantly. We have taken the pulse of the UK’s female population when it comes to their finances, looking at everything from notions of financial independence to the glass ceiling at work and childcare responsibilities, to gain an insight into what successes have been achieved and where challenges remain.

1815: THE NAPOLEONIC WARS AND THE BIRTH OF SCOTTISH WIDOWS

The Napoleonic era from 1793 – 1815 brought to battle the largest armies ever seen in Europe, costing more European lives than any other conflict before the First World War. Out of a million men and boys who fought in the British army and navy, from a population of 14 million, 311,000 died.1

Around 50,000 Scottish volunteers were mobilised during the Napoleonic Wars. A quarter of the Scottish male population also served abroad in a military capacity between 1792 and 1815.2

Unsurprisingly, the Napoleonic Wars had a significant effect on the economy. Households struggled throughout Britain as incomes were depressed by heavy taxes and inflation. Private consumption fell sharply from 83% of national expenditure in 1788-92, to 72% in 1793-1812 and as low as 64% in the last years of war.3

The Napoleonic era had an inevitable impact on families, particularly for women dependent on male family members. Widows were left to manage their households, contend with the increasing cost of living and an uncertain future.

SCOTTISH WIDOWS: HELPING WOMEN PREPARE FOR THE FUTURE

Against this backdrop, the idea for Scottish Widows was first established in 1812 to support the financial needs of Napoleonic widows in Edinburgh and the surrounding areas.

In March 1812, a group of eminent Scotsmen gathered in the Royal Exchange Coffee Rooms in Edinburgh to consider setting up ‘a general fund for securing provisions to widows, sisters and other females.’

In 1815, The Scottish Widows’ Fund and Life Assurance Society – Scotland’s first mutual life office – opened for business. By 1817, Scottish Widows had become strong enough to purchase it’s first office for its sole use in St David’s Street.

1 In These Times: Living in Britain through Napoleon’s Wars,

1793-1815 by Jenny Uglow

2 http://www.napoleon-series.org/research/society/c_scottishidentity.html

3 Source: The Domestic Impact of the Napoleonic Wars. Sarah Richardson,

University of Warwick

I N T R O D U CT I O N

0120 0 Y E A RS O F

WO M E N A N D F I N A N C E –

S ETT I N G T H E SC E N E

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WOMEN PUT ASIDE ON AVERAGE 30% LESS A MONTH FOR RETIREMENT THAN MEN‘

‘WIDOWS WERE LEFT TO

MANAGE THEIR HOUSEHOLDS, CONTEND WITH THE INCREASING

COST OF L IV ING AND AN UNCERTAIN FUTURE

‘

‘

Scottish Widows' prospectus

Introduction 200 years of women and finance

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John Stuart Mill jailed for distributing pamphlets on birth control

London National Society for Women’s Suffrage founded

18671823 1870

1928 1929

THE SUFFRAGETTE MOVEMENTThe London Society for Women’s Suffrage was formed in 1867, and after years of public and political struggle in 1928 the Equal Franchise Act was formed. Women’s voting age was lowered to 21 and property qualifications were reduced to the same as men. It was an extension of the 1918 Representation of People Act, which had granted married women over the age of 30 the right to vote.

Married Women’s Property Act - allowed married women to be the legal owners of the money they earned and to inherit property

Equal Franchise Act - women gain full suffrage, equal to men

First election takes place in which women are allowed to vote

Two million women replaced men in the

labour market during WWI

Women over the age of 30 gain the vote, as

long as they are married, or a member of local government register

Law of Property Act allows husbands

and wives to inherit property equally

1914

1918

FIRST AND SECOND WORLD WARS SEE INCREASED NUMBERS OF WOMEN ENTERING THE WORKFORCEIn 1914, a quarter of women were in work, but earning less than their male counterparts. Between 1914 and 1918 two million women replaced men in the labour market.

THE SEX DISCRIMINATION ACTThe Sex Discrimination Act protected both women and men on grounds of sex or marital status. The Employment Protection Act, introduced in the same year, established maternity leave and made it illegal to dismiss someone on the grounds that they were pregnant.

WOMEN IN THE WORKFORCE TODAYWomen now make up almost half the workforce in the UK. It is predicted that the number of women on FTSE 100 boards will reach the target of 25% by the end of 2015.

Since Scottish Widows opened its doors on Princes Street in Edinburgh almost 200 years ago, the world has changed significantly for women. Throughout the course of the past two centuries, significant milestones have paved the way for female emancipation. As a result, the experiences of women in contemporary Britain are very different from those of 200 years ago.

K EY M I L ESTO N ES FO R

WO M E N 1 81 5 – 2 0 1 5

National Provincial becomes first clearing

bank to remove marriage ban on female staff: others follow suit

over the decade

Barbara Minister appointed Minister of Transport - First female minister of state

Economic boom gave young women the opportunity to build up a career

1922

1979

1980

1950 2000

2014

1964

1965

1970

19751973

Sex Discrimination Act becomes law

Employment Protection Act, establishing maternity leave

Women can apply for loan or credit in

their own name

Lady Susan Rice, First woman head of a UK clearing bank,

Lloyds TSB Scotland

Margaret Thatcher becomes first

female PM

Women now make up 47% of workforce

Equal Pay Act 1970

Women allowed on floor of stock exchange

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FAMILY HISTORY: CAREER-DRIVEN FEMALE SUFFRAGETTE ACHIEVES PUBLIC RECOGNITION FOR SCIENTIFIC WRITING

War veteran Sir William George Fairfax was a Vice-Admiral in the Royal Navy and enjoyed a successful career, primarily residing in Fife. His most notable service was as Admiral Adam Duncan’s flag captain on board VMS Venerable during the Battle of Camperdown on 11th October 1797. He was knighted for his outstanding service and made a Rear Admiral in 1801. He died aged 74 in Edinburgh.

Upon his death in 1813, he left estate valued at just over £136. The equivalent value in today’s currency varies, dependent on different factors, but its economic power would be worth almost £414,000. However, he was also in possession of stocks and shares which were valued at just over £631 on the day of his death – an amount which would hold economic power of almost £2million.

The National Trust is in possession of an oil on canvas portrait of Sir William, painted by Sir Martin Archer Shee, PRA, and held at Charlecote Park in Warwickshire. Various papers and correspondence belonging to Sir William is held by the Bodleian Library in Oxford.

AMBITION INHERITED BY HIS CAREER-DRIVEN DAUGHTER, MARY FAIRFAX

One of his nine children, Mary Fairfax (born in 1780), inherited her father’s flair for success and was keen to pursue an academic career in astronomy and mathematics.

In 1804 she married her distant cousin, Captain Samuel Greig, who was the Russian Consul in London. He was disapproving of women with academic ambitions and the relationship was unhappy. After three years of marriage

he died, and she returned to Scotland. In 1812 she married her second husband (another distant cousin) Captain William Somerville who, unlike his predecessor, supported Mary’s academic aspirations.

In 1869 her scientific writings achieved public acclaim and she was awarded the prestigious Victoria Medal of the Royal Geographical Society. Significantly, this was just two years after the London Society for Women’s Suffrage formed in 1867. Interestingly, four years before her death at age 91, Mary signed John Stuart Mill’s unsuccessful petition for female suffrage.

At this time Mary was living in Italy, where she later died, along with her two daughters. Mary is buried in her namesake at Oxford University’s Somerville College, where she is commemorated by a statue.

YET, THERE WAS ALSO A SUCCESSFUL BUT PROMISCUOUS SON FROM MARY’S FIRST MARRIAGE…

When Mary was married to her first husband, Captain Samuel Greig, she had a son who was born in 1805.

He was named Woronzow Greig, after the Russian Ambassador in London who had appointed his father.

Like his mother and grandfather, he was notable in his career. He was a solicitor and scientist who was made a Fellow of the Society in 1833 and appointed Clerk of the Peace for Surrey County in 1849. He married Agnes Graham in 1837, but she was unable to bear children.

It was later discovered that while he was studying at Cambridge University he had an illegitimate daughter – Jane Ernestine Rowland. Records suggest that Jane lived with her mother Jane Catherine Widmayez (who was believed to be Swiss) and her husband. LIVING DESCENDANT TRACED, AND LIVING IN JERSEY

In 1852, Jane Rowland married Henry White and had five children. Their fourth child, Katherine Eugenie White, married John William Thompson in 1884. Their youngest son, Henry John R Thompson was born in 1890 and married Olive Webb. They had a daughter, Rae Thompson Webb, who was born in 1936 in Jersey. One of her sons, Nick Pallot is still currently living in Jersey.

NAPOLEONIC VETERANS

AND THEIR DESCENDANTS:

WOMEN THROUGH HISTORY

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We’ve seen in the previous chapter how much life has changed for women since Scottish Widows was established back in the 1800s. But how did this affect real people? Working with genealogist Kirsty Gray, we have managed to track down families of those individuals that Scottish Widows was originally set up to support – families of the Napoleonic War veterans.

Mary’s baptism certificate

Mary’s marriage certificate

Napoleonic veterans and their descendants Napoleonic veterans and their descendants

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FAMILY HISTORY: MANAGING A HOUSEHOLD OF NINE CHILDREN

Captain Thomas Hewan held the rank of Captain in the 4th Regiment of Foot, and then later served in the Angus-Shire Fencible Regiment of Infantry during the Napoleonic Wars. Although we don’t know Captain Hewan’s exact age, we can assume that, due to him having married in 1764, he would have been at least in his early 60s at the time of his death. Already holding the rank of Captain, he would have been a prime candidate to serve with the auxiliary forces in later life.

Of the 10 children, we were able to trace one daughter, Louisa Hewan. According to records, she married Reverend William Archdall in Dublin in 1799. Louisa and her husband had at least 10 children in quick succession.

CAPTAIN THOMAS’ GRANDDAUGHTER BORE 12 CHILDREN

One of their daughters, Catherine, also married a Reverend William Archdall (William Rowley), and was in charge of running a household with nine

children – three of the 12 died in infancy. William was Rector at Ballinlanders, County Limerick from 1847-1860.

William and Catherine later moved to County Durham in 1860. He then died in 1863 leaving her widowed until her death in 1881. The ministry tradition prevailed, and two of Catherine’s sons followed in their father’s footsteps.

One of her sons, Thomas Archdall, held office for Justice for Peace, and was also the honorary Canon of Durham in 1914. Thomas married Mary Alexander in 1873 and they had nine children. The youngest child, Ruby, died shortly before her fifth birthday.

Thomas and Mary Archdall’s fifth child, Mary, married David Dewar in 1909 and they had three sons Alan, Hewan and Mervyn. Alan Dewar, who was born in 1911, married Winifred Thorpe in 1946 and they had two sons. Interestingly, Alan worked as a tea planter and often travelled overseas with his wife and children, as far afield as Tanzania.

LIVING DESCENDANTS TRACED

Both Alan and Winifred’s children are still alive, and one of these children has also had a child of his own, making her Captain Thomas Hewan’s great-granddaughter five times over.

FAMILY HISTORY: SCANDAL AND PUBLIC DIVORCE

Major Thomas Clarkson Moncrief held the rank of Major of Berwickshire Regiment; he did not have a ‘clean’ military record. In 1807, proceedings of the General Court Martial were held in his name for ‘outrage committed in the mess-room’, for which he was ‘severely’ reprimanded.

Captain Moncrief was married and had one daughter – Catherine Clarkson Moncrief. She is believed to be the Widow of Captain Henry Norton, who served in the Royal Scots Regiment Infantry, and the sole executor of her father’s estate. They had one child, Catherine Moncrief Norton who was born in 1798.

Catherine Moncrief Norton (the only granddaughter of Thomas Clarkson Moncrief) married John Sinclair at Canongate, Edinburgh on 2 May 1816, and had four children. Mr Sinclair became a successful drummer in the militia and later a well-known singer, who toured the U.S. in the early 1830s.

PASTURES NEW: MONCRIEF’S GREAT GRANDDAUGHTER MOVES TO NEW YORK

The oldest of the Sinclair’s children, Catherine, is the most notable. At the age of 19 she attended a performance of The Gladiator, meeting the then-popular American actor, Edwin Forrest, who starred as Spartacus. In June 1837, they were married in Covent Garden, and shortly after, the newly-wed Forrest couple moved to New York. They had four children, all of whom died in infancy.

GREAT GRANDDAUGHTER IS CAUGHT UP IN PUBLIC SCANDAL

In 1848 Edwin Forrest began to suspect his wife of infidelity, and she made the same accusations against him. This led to a very public and messy divorce, which gained considerable media attention because of Forrest’s celebrity.

The divorce was finally awarded in February 1852, which paid Catherine $3,000 a year for life (the equivalent of $87,500 today), and she later received $100,000 from his estate when he died in 1872.

Catherine Forrest began acting in London, Australia and America, and gained notable attention largely due to her status as the former Mrs Forrest. Records show that she never remarried and ended up living with her sister and then nephew, before dying from cerebral embolism in 1891.

These stories demonstrate how the situation for women has evolved over the course of history. Although some of the themes raised (careers, the impact of divorce and caring for children) are relevant to today’s society, it is clear that the experiences of women in contemporary Britain are vastly different from 200 years ago.

$3,000was paid to Catherine a year for life

Napoleonic veterans and their descendants

Having looked back over 200 years of women and their finances, in this next chapter we take a temperature check of women’s attitudes in 2015 –their hopes and expectations and where the biggest challenges lie.

To paint a complete picture of women’s attitudes and expectations towards their finances in Britain today, we have gathered insights from more than 2,000 women aged 18 and above, including barriers to work, financial emancipation and balancing finances within relationships.

TODAY’S WOMEN INSIST ON FINANCIAL INDEPENDENCE

Perhaps one of the most striking aspects in terms of how women’s finances have moved on over the past 200 years is the fierce insistence of women to retain their independence over their own money.

This desire for independence is perhaps unsurprising when it comes to the dominance that women now have when it comes to running the household finances. Almost two thirds (62%) of women say they have exclusive responsibility for managing the organisation of day-to-day household expenditure, compared to just 5% who said their partner had exclusive responsibility, and 24% who said they share responsibility equally with their partner.

THE STATE OF RELATIONSHIP FINANCES TODAY

THE AGE OF FINANCIAL INDEPENDENCE MANAGING HOUSEHOLD EXPENSES

WO M E N A N D T H E I R

F I N A N C ES TO DAY

05

of women say they are the main breadwinner in the household

of women think their partner or spouse is the household’s main breadwinner

TODAY’S MAIN BREADWINNERS

17% 52%

of women in a relationship felt they would be able to manage their finances independently if they split with their partner

of women said they chose to keep their finances separate in case the relationship failed

39%My partner and I have only

separate bank accounts

79%

19%

My partner and I have separate bank accounts as well as a joint bank

account, but this is only used for paying housing and childcare costs and bills

28%

My partner and I have only a joint bank account, which

we use for everything

30%

of women are exclusively responsible for funding household expenses51% 37%

of women said their mothers were responsible for managing the household finances when they were growing up

WHO IS RESPONSIBLE FOR MANAGING THE HOUSEHOLD FINANCES?

Women aged... 18-24 25-34 35-44 45-54 55-64 65+

Me 43% 53% 65% 66% 63% 67%

My partner/spouse 5% 7% 6% 5% 4% 3%

My partner/spouse and I share equal responsibility

14% 23% 24% 24% 27% 23%

My partner and I share responsibility 5% 7% 3% 4% 6% 7%

My parents 28% 6% 1% 1% 0% 0%

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Women and their finances today

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Women and their finances today

LOOKING TO THE FINANCIAL FUTURE THE AGE OF FINANCIAL INDEPENDENCE

INDEPENDENCE TRIGGERS

of women in a relationship say they are relying on their

partner to make provisions for their financial future

At what age did you feel financially independent from your parents?

Under 18 18-20 21-30 31-40 41+

of women in a relationship have separate pension plans but they and their partner are both aware

of each other’s plans

make joint decisions on all aspects of their financial future with their partner

THE MOMENT OF FINANCIAL INDEPENDENCE

The research showed financial attitudes and habits are not just shaped by partners and current living situations. Most people’s relationship with money is first learned from their

parents before they become responsible for their own finances.

Twice as many women said it was their mother who taught them to manage their finances, as opposed to their father

FINANCIAL LESSONS

18% 9%

17% 34% 39% 2% 1%

At what life milestone did you become financially independent?

28%

15%

20%

10%

4%

2%

2%

1%

Getting married

Getting my first job

Buying my own home

Renting my own home

Turning eighteen

Having a child

Buying my first car

Paying off debt

17% 56%7%

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Women and their finances today Women and their finances today

of mothers are concerned they will be supporting

their children until they are 30

of mothers would be willing to support their

children as long as they need help

of women with dependent children are concerned they will be unable to

save for the future

worry they will need to dip into their retirement

savings to financially support children

DAY-TO-DAY LIVING COSTS INHIBIT FUTURE FINANCIAL PLANNING

RESPONSIBILITY FOR CHILDCARE AND ITS COSTS

FINANCIAL SUPPORT OF CHILDREN ADVANCING INTO ADULTHOOD

PROPORTION OF WOMEN WHO DON’T OWN THEIR OWN HOME THAT ARE WORRIED THEY WILL NEVER GET ON THE PROPERTY LADDER

BALANCING CHILDREN AND CAREER PROGRESSION

The majority (58%) of women say day-to-day financial pressures – “cost of living”, prevent them from saving as much as they would like to for the future. And while 42% of women cite home

ownership as the mark of financial independence, a third do not own their own home.

Despite women making huge steps towards financial independence, many of their traditional roles as mothers and housewives remain much the same. Almost half (44%) of married mothers discussed and agreed with their husbands to take a

backseat in their career to provide childcare.

Perhaps even more of a concern for women is the fact that supporting children financially is not a job that ends when they become adults.

Over a quarter of married women with children under 18 are responsible for funding childcare, compared to fewer than one in 10 men.

Over a quarter of married women with children under 18 are

responsible for funding childcare

compared to fewer than one in 10 men

18-24 25-34 35-44 45-54 55-64 65+

62% 60% 35% 23% 11%3%

of women say having children has not impacted their career

of women believe having children has reduced their financial independence

believe that having children negatively affected their career progression

believe there is a glass ceiling in the workplace

FUNDING CHILDCARE

THE COST OF SUPPORTING CHILDREN

of married women contribute between 25% - 50% of their

salary towards childcare

26%

52% 47% 44% 32%39%

37%

26%

5%

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Women and their finances today Women and their finances today

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C O N C LU S I O N

Women have asserted their right for financial independence, forcing legislative change and adapting their role within the family. Comparing the situation of our three case studies with the 2,000 women we surveyed today highlights the depth of this journey.

Our research demonstrates that today women are more financially secure and independent from their partners. The traditional role of women in childcare, although still significant, has also evolved. Catherine Archdall’s nine children would have bound her to family life. Today women pursue careers alongside family life, are responsible for income, and contribute financially to childcare costs.

Mary Fairfax’s ambitious pursuit of a career despite disapproval is clearly an exceptional case, and reflects the beginning of the women’s rights movement.

However, although women today have greater choice and flexibility, there is still further to go before financial equality is fully achieved – particularly at work. Our research highlights that 52% of women still say their partner is the main breadwinner.

As we look to the future, women are faced with new sets of challenges – including an ageing population, the rising cost of living and dependence of children through to adulthood.

In this uncertain environment, Scottish Widows remains committed to providing support to ensure women and families are saving and planning towards a secure future for the next 200 years and beyond.

TODAY WOMEN ARE MORE FINANCIALLY

SECURE AND INDEPENDENT FROM THEIR PARTNERS

‘‘

The comparison between the financial position of women 200 years ago and today, highlighted in the report, is fascinating. There are many things that women, like me, take for granted; such as going out to work and the ability to own property in our own name. Yet the right to own property was only granted after a long fight. And it wasn’t until the mid 1970s that women were able to take out a mortgage solely in their name. Before then, an application had to be countersigned by a man! One hundred years ago, when Scottish Widows was marking its centenary, most women didn’t work, whereas today, the majority do. However, while women are active at all levels in the workplace, equality of earnings is proving elusive – something that has a knock-on effect on a woman’s ability to save and invest for her future. Our commitment to supporting women is at the heart of everything we do - not only at Scottish Widows, but also as part of Lloyds Banking Group. With our Helping Britain Prosper plan, we have made a commitment to seeing women succeed and, more specifically, to have 40% of our senior roles held by women by 2020. As women now make up 50% of the UK workforce, we must continue to support and champion the development of women in the workplace. Only through this can we ensure that progress can continue , and that women are saving and planning towards a secure future for the next 200 years and beyond.

Sarah Pennells Editor Savvywoman.co.uk

Photo by Simon Brown

52%of women still say their partner

is the main breadwinner

THE 200 YEARS FOLLOWING THE ESTABLISHMENT OF SCOTTISH WIDOWS HAVE BROUGHT CHALLENGES, BUT ALSO SEEN REAL

ADVANCES FOR WOMEN AND THEIR FINANCES.

Conclusion

Scottish Widows plc. registered in Scotland No 199549. Registered office in the United Kingdom at 69 Morrison Street, Edinburgh, EH3 8YF. Telephone0131 655 6000.

Authorised by the Prudential Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register member 191517.