Gender savings gap leaves women saving 35% less than men

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.

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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.

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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.”