MILLIONS of women are hundreds of thousands of pounds worse off than their male counterparts just because of their gender.
This disparity starts in childhood and continues to old age.
Here, MEL HUNTER reveals how to close the gap.
Childhood
Girls start missing out on money from a young age.
Parents typically give boys 20 per cent more pocket money, £3 per week compared with £2.50 for girls, leaving boys £26 better off a year, found research by Starling Bank.
Meanwhile, it found that girls’ toys cost five per cent more than boys on average.
Girls are also exposed to public attitudes that suggest they are irresponsible with money from a young age, such as the viral trend “girl math”.
How to fix it
If you’re a parent, talk about money with your kids.
Get them saving up for toys they want so they build good habits early on.
Set a good example around the house, too.
For example if you’re in a couple, share money responsibilities equally.
Financial adviser Lisa Conway-Hughes says: “Be aware of conversations about money that go on in your house. Try to make them positive.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”What are the different types of pensions? ” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6348910230112″ video_ids=”” width=”640px”]“Prepare your daughter for facing bias. Teach girls as well as boys that it is important to invest.”
Early working life
The cost of living crisis has disproportionately affected women, research suggests.
According to the Young Women’s Trust, 36 per cent of young women have taken on more debt in the last 12 months, compared to 28 per cent of young men.
Women aged 21 to 29 are typically paid 1.3 per cent less than men, known as the “gender pay gap”.
[boxout headline=”SAVING ACCOUNT TYPES” intro=”THERE are four types of savings accounts fixed, notice, easy access, and regular savers.”]Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.
But we’ve rounded up the main types of conventional savings accounts below.
FIXED-RATE
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw, but it comes with a hefty fee.
NOTICE
Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.
These accounts don’t lock your cash away for as long as a typical fixed bond account.
You’ll need to give advance notice to your bank – up to 180 days in some cases – before you can make a withdrawal or you’ll lose the interest.
EASY-ACCESS
An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.
These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.
REGULAR SAVER
These accounts pay some of the best returns as long as you pay in a set amount each month.
You’ll usually need to hold a current account with providers to access the best rates.
However, if you have a lot of money to save, these accounts often come with monthly deposit limits.
This figure means men can typically get on the housing ladder one year earlier than women.
Young women are also hit by the “pink tax” where they pay nearly 40 per cent more for essential toiletries than men.
How to fix it
If you have money to save, invest some of it, although make sure you have around three months’ salary in savings first.
Only 34 per cent of women aged 18-24 invest, compared to 64 per cent of men.
Lisa says: “If you are saving for five years or more – for a house deposit, for example – your money is going to perform better by investing.”
A Lifetime ISA could also give your house savings a 25 per cent boost from the government.
To swerve the pink tax, study prices, find the cheapest products and, if necessary, buy things aimed at fellas.
The caring years
Women who care for kids or relatives see the gender pay gap widen, with men aged 40 to 49 years paid 9.1 per cent more than women.
They are a third more likely to be providing unpaid care or childcare than men, while almost three-quarters of part-time workers are women.
It means they earn less and therefore have less to save, invest or put in a pension.
They may also stop National Insurance (NI) contributions, which affects their state pension.
Divorce can also cost women more, with women often not dividing pension assets, according to Scottish Widows.
It said this can mean they miss out on an average of £77,000 in retirement.
How to fix it
Couples with caring responsibilities should make decisions together to ensure no one is left worse off.
If one is not working, the other could contribute to their partner’s pension to even things up.
Use any support available to help women work, including universal credit, free childcare for pre-school kids, tax free childcare for under 12s (or 17 if they have a disability).
There is also the Holiday Activities and Food Programme for children who get free school meals.
Women who take time out to care for children should check they have NI Credits.
Check your state pension age and how much you’ll get at gov.uk/check-state-pension.
Make sure you’re contributing to a pension throughout your working life.
Anyone aged 22 or over who earns £10,000 a year or more will be automatically enrolled in a work pension scheme, but that won’t apply if you are on a zero-hours contract or are self-employed.
You can still set up a pension yourself and pay into it each month. Even a little will help.
Susan Hope, of Scottish Widows, says: “Some may prioritise keeping the family home, but this could be at the expense of a fair pension share.”
You can get free information from the Money and Pensions Service (maps.org.uk).
If divorce is a possibility, make pensions part of the discussion.
Later life
Women typically live to 82 compared to 78 for men, but have much less money to survive on.
Scottish Widows Women and Retirement Report 2024 found that women are on track to have a £130,000 smaller pension pot at retirement than men – roughly a third smaller.
Women are also more likely to be in so-called digital poverty than men, meaning not only are many of the best online deals closed off to them, from shopping to price comparison sites, they also can’t access the knowledge and skills to change things.
How to fix it
If you have gaps in your NI record, check if you can use credits to plug gaps.
You can also buy back missing NI years from 2005 to 2016.
But hurry as the deadline is April 5 and this process can take time.
Track down any old pensions. There’s £31 billion in unclaimed funds.
The government has a free pension tracing service, visit: gov.uk/find-pension-contact-details.
It’s also vital to get all the help you are entitled to, including pension credit, attendance allowance and carer’s allowance.
Call the Independent Age free helpline on 0800 319 6789 for a benefits check – on average callers are entitled to £4,000 more support.
Go to goodthingsfoundation.org/find-support/ to get help with accessing the internet and learning online skills for free.