New findings highlight a significant gender gap in financial well-being within UK workplaces, with women more impacted than men.
- Financial instability is more pronounced among women, with a notable disparity in overall well-being scores between genders.
- Women’s financial worries are consistently higher, especially regarding everyday expenses and long-term goals such as retirement.
- There is a lack of financial literacy among women regarding tax allowances and financial products, indicating a need for targeted education.
- Employers are not sufficiently addressing financial well-being, with inadequate support and advice for female employees.
Recent research conducted by Close Brothers’ Workplace Financial Wellbeing Services unveils a significant gender gap in financial well-being among the UK’s workforce. This imbalance is particularly troubling amidst recent economic turmoil, affecting women more severely than men. According to the study, women’s overall financial well-being index score stands at 54, compared to 60 for men.
The research indicates a higher degree of financial dissatisfaction among women, with 32% expressing unhappiness with their financial state compared to 25% of men. Furthermore, 42% of women frequently worry about their finances, overshadowing the 32% of men who report similar concerns. Alarmingly, over half of the women surveyed experience anxiety due to financial worries, highlighting a pervasive issue of financial stress.
In practical terms, women consistently face more distress regarding financial pressures. For example, 40% of women express concern over increasing mortgage or rental costs, compared to 27% of men. Similarly, 46% of women worry about managing day-to-day living expenses, as opposed to 30% of men. The research finds that 31% of women feel unprepared to handle potential financial impacts from illness, compared to 20% of men, further emphasizing this disparity.
The study underscores several specific areas where women are particularly vulnerable. Notably, 42% of women fear they cannot afford to retire, in contrast to 29% of men. Additionally, 35% of women struggle with saving for future goals, while only 21% of men report this issue. Around 33% of women feel financially unprepared for unexpected expenses due to significant income reductions, demonstrating a critical need for improved financial resilience.
A stark difference in confidence levels is observed between genders regarding long-term financial goals. While men and women are similarly confident in achieving short-term savings goals, confidence wanes for women when considering medium- and long-term objectives. Specifically, 26% of women lack confidence in reaching medium-term savings goals, compared to 19% of men. The disparity is even more pronounced concerning retirement savings, with 48% of women fearing they will not be able to retire as desired, against 31% of men.
The research highlights a concerning gap in financial knowledge among women. Over half of the women surveyed either do not understand or are unaware of available tax allowances and reliefs, such as the Marriage Allowance and ISA Allowance, suggesting a pressing need for financial education tailored to women in the workplace.
Financial advice emerges as a crucial need, with 37% of women believing it would enhance their financial well-being. Despite this, only 15% of employers offer financial guidance, and even fewer provide additional support services like mortgage advice or employee shopping discount schemes. This lack of support suggests that workplaces must do more to address and improve financial well-being, particularly for women.
As Jeanette Makings, Head of Workplace Financial Wellbeing, remarks, despite advancements in well-being initiatives, financial health often receives less attention, disproportionately affecting women. The gap in financial health is attributed to several factors, such as career breaks for family care, higher prevalence of part-time work, and lower-paid roles among women. Makings advocates for targeted financial education and guidance, which could help bridge this gap, enhancing not only women’s financial well-being but also employee engagement and overall business performance.
Addressing the gender gap in financial well-being is crucial for enhancing workplace equality and improving overall employee engagement and performance.
