Women in the UK are still significantly worse off than their male counterparts, a new research study by Handelsbanken Wealth & Asset Management shows, with women holding an average of £177,000 in financial assets, compared to £218,000 for men.
Handelsbanken Wealth & Asset Management’s report, Building your financial future: Are you in control? highlights how the gender divide in financial literacy and confidence in investment markets and products is impairing women’s ability to build wealth, while also exploring how different generations are experiencing the financial world differently.
Persistent Lack of Financial Education
This year’s research reveals that just 19% of adult women feel they received a good education on managing money in school compared to 23% of men. Reassuringly, 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.
Regardless, more women than men in every age bracket admit 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 to 43% of men, while over half (53%) of women admitted to the same for pensions, compared to 34% of men.
This year, our survey indicated – once again – that men are still guiding long-term financial products, while women are typically running household finances. Women are more likely to have oversight of groceries and other household bills: 75% of the women who responded to our survey, versus 63% of the men. Meanwhile, men are more likely to have responsibility for longer-term products such as pensions (43% versus 32%) and investments (38% versus 19%). When it comes to finance, the traditional stereotype of women managing household budgets while men take care of financial products and services is appearing to linger.
Tellingly, wealthier consumers were more likely to embrace higher risk investment options. More than four fifths (86%) of people with assets of over £100,000 felt comfortable with a higher risk product in their search for higher returns, compared with 73% of those with assets under £100,000.
The research also found that men are far more likely to feel confident offering financial advice to friends and family (38% versus 29%).
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.”
Handelsbanken Wealth & Asset Management offers financial learning resources for interested parties through their Learning Zone.
This report follows Handelsbanken Wealth & Asset Management’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 amongst men and women in the UK.
