Women are taking control of a greater proportion of wealth than ever before. Not only is it becoming more common for women to be the main breadwinner, they are increasingly responsible for household finances and savings.
In fact, women are poised to become an economic force. In a recent report by Boston Consulting Group, women are expected to increase their share of wealth by more than 7% each year by 2023. Here in the UK, a 2005 report from the Centre for Economics and Business Research predicted women will own 60% of the UK’s wealth by 2025. One reason for this is they are out-earning men in approximately a quarter of UK households now, compared to one in five households 16 years ago, research by the Office for National Statistics on behalf of Royal London shows.
This is not to say men are completely out of the picture. In fact, men generally have more stashed away in the form of investments and pension savings throughout their lifetimes. And even though all of the research suggests women will soon control most family wealth, the fact remains that most women have accumulated a smaller pension pot than men by the end of their working lives. At age 65, women are retiring with an average fund saved of £35,800, compared to an average £179,000 set aside by men, according to the Chartered Insurance Institute.
The reason for this is that women often do not invest as much or as regularly as men, and this puts their financial health at risk. Numerous studies have found that women are reluctant to invest their hard-earned wealth in the stock market. When asked why, they frequently cite a lack of confidence, a mistrust of the industry and a tendency to take less risk – or avoid it altogether by keeping savings in cash. So what can be done?
