Close to a third of women (29%) in the UK are saving less than £100 a month, according to a new research report from Schroders Personal Wealth (SPW).
This compares unfavourably with the rate for men, with just 15% not reaching this threshold.
The Women and Wealth Report 2024 is based on an independent survey of 750 women and 750 men aged 35-65+ with £50k-£100k+ in gross household earnings, conducted on 30 July 2024.
The researchers also found large gaps between men and women in other areas of their finances, including financial confidence, investments, pensions and inheritances.
Only 17% of women said the feel very confident about achieving their long-term financial goals, compared to 29% of men.
Just over half (53%) of women cited a lack of extra cash as their main barrier to investing, and only 26% of women have a stocks and shares Isa compared with 45% of men. A relatively small 13% of women are ‘very confident’ they will be able to leave an inheritance, compared with 22% of men.
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The report also explores the ‘root causes’ of these disparities, including gaps in financial education and confidence, and proposes solutions.
It recommends three practical steps. First, educate women to ensure understanding of the key financial principles needed to make informed decisions.
Second, automate contributions, so setting aside money for savings or investments in a regular occurrence.
The third thing is to explore growth opportunities. This means looking into investment options that suit risk tolerance and timeframe.
Katie Nutting, financial planning director at SPW, said: “Addressing gendered financial disparities requires systemic change – but individual actions can help. From small but consistent savings to investment options, there are practical ways which aim to enhance women’s financial security, even in uncertain times.”
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Sean Ingram, chief marketing officer at SPW, added: “We recognise that achieving financial independence is a critical challenge many women face, through choice or when their circumstances change through divorce or loss of a partner. We at Schroders Personal Wealth take this responsibility very seriously.
“Our Women and Wealth report highlights our commitment to empowering women at every stage of their financial journey, from those who need advice to help ensure they are more financially secure to those who need a plan for the next generation. In doing so, we hope to enhance women’s financial confidence and empower them to take control of their financial futures.”
