We’re living in an era that has seen remarkable strides towards equality and fairness, but there’s still some way left to go. There’s still a huge gap between the amount women are saving in pensions and investments and the amount set aside by men.
Public consciousness of the gender savings gap in Britain has grown, but if you haven’t done so yet it’s worth taking a hard look at how the gender divide affects your finances, and see how you can do your bit to close the gap.
First, let’s consider what the gender savings gap is.
What is the gender savings gap?
According the Chartered Insurance Institute, by age 65 the average woman will have £13,400 in savings and £35,700 in a pension. In contrast, by age 65 the average man will have £141,900 in a pension!
The savings gap is tied to a gap in earnings, of course, with less disposable income leading to less capital to save, but it is compounded by longstanding social structures that still influence us today.
The past century has seen a dramatic upheaval in the old order, but even so, the time period during which women have been able to earn and save on an equal footing with men is a blink of an eye in historical terms.
The role of family and culture
Our grandmothers grew up during a time when they were expected to tend to their homes, care for children and relatives, and leave money management to the men. Culturally, this has trickled down to generations of younger women, so that even now the world of finance is still thought of as a masculine sphere.
Women are also more likely to be left with care of children after the end of a relationship, which can greatly affect their financial situation. They are also more likely to be working as unpaid caregivers and to suffer domestic and financial abuse. Financial instability is a common by-product of divorce, with divorced women having pension pots one third of the size of divorced men.
All of these factors can result in women having less than men set aside in pensions, savings and investments.
Over to you…
We’re all different, so we all need to look at our finances and make our own plans.
Look into investing, contribute to your pension if you’re working and register for National Insurance credits if you’re eligible. Retirement planning might seem to be unnecessary when you’ve got a growing family to look after, but it’s essential!
Advertorial post with Aviva