A persistent gender divide in financial literacy and confidence in investment markets and products is impairing women’s ability to build wealth, according to Handelsbanken Wealth & Asset Management’s latest report.
Building your financial future: Are you in control? revealed just 19% of adult women feel they received a good education on managing money in school compared with 23% of men, with more women than men in every age bracket admitting to having limited or no understanding of financial products such as investments, mortgages, pensions and insurance.
Notably, nearly two thirds (64%) of women claimed to have little or no knowledge of investments compared with 43% of men, while over half (53%) of women admitted to the same for pensions, compared with 34% of men.
The survey also indicated that traditional gender roles are still prevalent, with men guiding long-term financial products while women typically run household finances. Women are more likely to have oversight of groceries and other household bills, while men are more likely to have responsibility for longer-term products such as pensions (43% versus 32%) and investments (38% versus 19%).
Men were also found to be far more likely to feel confident offering financial advice to friends and family (38% versus 29%).
Also read: Six ways IFAs can improve financial education for clients
Reassuringly, the report said the future looks brighter: younger generations (aged 18-34) are more likely to feel they had a good education than those aged 50 years or over (34% versus 13%), suggesting efforts to narrow this gap through education are beginning to work.
Stephen Cowling, acting head of wealth management at Handelsbanken Wealth & Asset Management, said: “This year’s wealth survey has shown continued evidence of the ongoing disparity between men’s and women’s finances across the country.
“The gender wealth gap, which has been created by historical and systematic factors, will take many years to balance out, particularly as younger women continue to feel that they have not received a proper financial education. Building financial literacy and confidence among women of all ages is crucial in turning the tide and reaching an equal level of wealth generation.
“As wealth advisers, we are committed to bridging this gap by empowering women to build secure financial futures with confidence. This means examining our own biases, hosting women-focused events and guiding clients toward the best financial education resources available.”
The report follows Handelsbanken’s national Wealth Survey in 2024 – Gender and generation: unravelling the wealth gap – which also delved deep into the issues surrounding wealth, personal finances and long-term financial planning among men and women in the UK.
This story was written by our sister title, PA Future
