Gender Savings Gap: Men save £1,392 more per year in Cash ISAs

March 20, 2025

With less than three weeks until the new tax year (5th April), potential changes to the Cash ISA tax-free allowance could impact one in four Brits (26%) who hold this type of savings account. But how are we currently using Cash ISAs, and what are the potential ramifications of a tax-free allowance reduction?

Data from Shepherds Friendly revealed some key insights into our saving habits:

Brits save an average of £421 each month (including investments and non-investment savings).
Men save an average of £446 per month, whereas women save £330, meaning men save 35% more on average.
Shockingly, 43% of Brits save NOTHING at all each month.

The research also uncovers how Brits currently use Cash ISAs:

Brits put an average of £295 into their Cash ISA each month. However, one in four contribute nothing at all to their Cash ISAs.
18-24-year-olds are the best cash ISA savers, setting aside £425 each month.
Stocks and Shares ISA holders save an average of £364 per month, with 35-44-year-olds leading at £608.
On average, men save £116 per month more than women, highlighting a gender savings gap.
Lifetime ISA savers set aside £416 monthly, which is more than the £333 a month you’d need to save to hit the £4,000 limit. However, a gender gap remains – men save £520 vs. £250 for women.

Derence Lee, Chief Finance Officer at Shepherds Friendly, commented on the potential impact of changes to the tax-free allowance:

“Cash ISAs have long been an extremely useful tool for many people to save money effectively, and one of the core reasons is the annual £20,000 tax-free allowance. If implemented, a reduction to a limit of just £4,000 would deal a huge blow to the millions of people across the UK who rely on Cash ISAs for building their savings, particularly during this period of economic uncertainty.

“The ability to save tax-free helps people build emergency funds, plan for major life expenses, such as buying a first home, as well as secure their financial future without the burden of taxation eating away at their savings. Cutting the allowance so drastically could potentially discourage saving, and with the Bank of England revealing that over £49.8bn was deposited into Cash ISAs in 2024, it’s clear to see that savers value the security and benefits of these accounts.

“With the cost of living continuing to be a challenge for many, and financial security being a big concern for many, reducing the ISA limit could have big consequences for millions of savers who rely on these accounts to help build a financially secure future. Instead of making such cuts, policymakers should be looking at ways to support and incentivise responsible financial planning, helping to ensure that people can continue to build a stable financial future.”