Gender savings gap: women save 35% less than men in the UK
Welcome to the bi-weekly update (#152) where we dive deeper into key topics, themes or issues specific to women and their lived experience.
Gender savings gap: women save 35% less than men in the UK
Women save a third less than men in the UK which leads to a 40% disparity at retirement, according to Money.co.uk.
According to the research, women must save more than £75,000 by 55 to close the difference in pension values.
And in order to close the gender savings gap by 65, women have to save £125,067.
It is not surprising that the gender savings gap widens with age as often women’s salary (historically) peaks at 40. This means women have had less money to save from that point on.
Also, women’s savings and the interest they earn on those savings, simply can not compound as much or as quickly for this reason.
We know from research that women also tend to provide more financial support to their children and elderly parents, which also eats into how much they can save.
Crucially, the surge in inflation around the world means the money women save but don’t invest, is losing value (or purchasing power).
The compounding effect can be both positive and negative. And if women only save, in a high inflation environment, their savings are being eroded over time.
This leaves women exposed to higher financial risk-especially as they age, because they have less of a financial buffer.
Perhaps the most important point of all, is that women are less likely to have adequate funds to cover their cost of care.
Given women live longer than men, this poses a real problem for many (women).
It’s no surprise that more women are concerned about their money and the implications on their future.
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