ao link
Reward Strategy homepage

Intelligence, community and recognition for pay and reward professionals.

Gender savings gap leaves women saving 35% less than men

Women in the UK are able to save a third less (34.5%) than their male counterparts, according to analysis of government figures.

TwitterLinkedInFacebook

Data from money.co.uk, which looked at ISA and pension savings, revealed women aged 65 and over face the greatest savings gap, with the disparity between the two genders as high as 40% at the age of retirement.

 

This amounts to a significant difference of over £40,000 in savings. By the time they are 65, women will have had to put aside an extra £125,067 to close the gender savings gap.

 

The disparity between men and women increases with age, with the smallest difference between men and women at age 25 to 34, at a difference of 20% (£3,483) in savings. In comparison, women at the start of their savings journey still average a quarter less (25.8%) than men when aged 16-24.

 

Read more: M&Co will close all stores, with loss of nearly 2,000 jobs

 

When it comes to mental health, nearly half (48%) of women are expecting stress as a result of the cost-of-living crisis, compared to 36% of men. Almost 1 in 5 men (18%) do not have financial concerns, but only 8% of women can say the same.

   

The pension value for men across the UK averages £106,450, whereas for women it is valued at £64,600. That is a difference of 39% in retirement funds that women are not able to save as part of their pension.

 

Read more: UK Power Networks workers threaten to strike over pay

 

Lucinda O’Brien, personal finance expert at money.co.uk comments on the best ways to save for retirement: “Not only should you choose the right savings account to suit your current income, but you should also reassess which savings account you need depending on your upcoming financial goals.

 

“For women in their twenties, an instant access account that has low commitments and immediate access to your money could be more suitable. For those slightly older, moving your funds to a fixed rate account that provides higher interest rates as a better savings option for long term goals.”

TwitterLinkedInFacebook
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

LATEST PAYROLL AND REWARDS NEWS IN YOUR INBOX

Reward Strategy homepage
Reward Strategy RSS

Did you find our website useful?

Thank you for your input

Thank you for your feedback

Member of
PPA Logo

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, 1-2 Paris Garden, London, SE1 8ND. All rights reserved. Reward Strategy is committed to diversity in the workplace. Copyright © Shard Financial Media Ltd.

We use cookies so we can provide you with the best online experience. By continuing to browse this site you are agreeing to our use of cookies. Click on the banner to find out more.
Cookie Settings