So what’s causing this huge gap?
The gender pay gap means that many women may have less money to invest. This isn’t helped by the fact that the new state pension deal leaves women £29,000 worse off than men over the course of a typical 20-year retirement. Under the new system, the average pension payout for women is £125.98 per week, compared to £153.86 per week for men.
But why are women not prepared for their long-term financial future?
Money Guru’s research has uncovered that women are more risk-averse with 35% of women saying that they would not invest due to the chance of losing money, compared to just 18% of men who said the same.
Data from April 2018 shows that 52% of women in the UK have never invested in financial products, and only 28% feel comfortable enough to invest some of their money. Studies are now showing that despite the issues and self-perception of low knowledge and confidence, women are actually better investors than men and have outperformed men for the past decade.
Where to Start?
We need to start empowering and encouraging women to invest towards their long-term future by highlighting this matter to women while we are fighting for equal pay on Equal Pay Day 2018.
At the same time, we need to change women’s perceptions on investment such as it being “not for them” or using words like “untrustworthy”, “masculine” and “unwelcoming”.
Money Guru Quote
Deborah Vickers, channel director at moneyguru.com said; “We have never seen a gender gap when it comes to applications for credit at moneyguru.com which is great to see. Just a generation ago women were viewed as a riskier investment by banks and stores and often had to get their father or husband to sign for most loans. It shows the real progress that just as many women as men are taking the lead when it comes to finding the right deals for them.”
Deborah continued “However these stats show that there is a still long way to go to empower women when it comes to their finances, especially if it is leaving them worse off in later life. Aversion to risk is something that we need to address across the board and in particular when it comes to supporting women to be more confident when it comes to financial investments.