- Fidelity International’s annual Women and Money study reveals more than half (53%) of women feel financially independent – the highest level in three years
- However, almost one in five (17%) do not feel financially independent – with more than half (51%) of this group unable to make their own life choices as a result
- “Disparities in pay, savings, pensions and investments all contribute to the difference in how financially independent men and women feel” – Claire Dwyer, Fidelity International
Fidelity International’s annual Women and Money study reveals that more women feel financially independent than at any point in the past three years.
Fidelity’s research suggests more than half (53%) of women feel financially independent, increasing from 45% in 2022 and 51% in 2023. While these findings paint an improving picture, the impact of gender finance gaps remains evident – with 64% of men confident in their financial independence by comparison. The number of women who do not feel financially independent has also fallen from 24% (2022) to 17% during this period.
Measuring Financial Independence 2022-24
| Growing financial independence | UK women | UK men | ||||
| Net 2022 | Net 2023 | Net 2024 | Net 2022 | Net 2023 | Net 2024 | |
| To what extent do you feel that you are financially independent? | 45% | 51% | 53% | 45% | 58% | 64% |
Amongst those women who do feel financially independent, almost half (49%) attribute this to having an income which covers their outgoings and expenses. Other determining factors include being free from debts (44%) and having a savings buffer which allows them to pay for unexpected expenses (41%). Almost four in ten (38%) of this group say they are financially secure enough to live independently and make their own life choices.
More than half (51%) of women who do not feel financially independent say this is because they do not have enough to live independently or make their own life choices, and 39% say this is because they are dependent upon their partner’s income. Almost a third (30%) face outstanding debts and a quarter (25%) have outgoings and expenses which regularly exceed their income.
Claire Dwyer, Head of Investment Companies, Fidelity International comments: “We began measuring feelings of financial independence amongst women as part of our commitment to understanding and addressing gender finance gaps. Our most recent findings suggest some of the challenges that have affected women’s personal finances – the pandemic, and rising cost of living – may be easing, with the number feeling financially independent at its highest level since 2022.
“While this is a welcome step forward, a clear gender gap remains. Disparities in pay, savings, pensions and investments all contribute to the difference in how financially independent men and women feel. The result is that many women feel constrained from taking control of their financial future.”
What does financial independence mean?
Women are most likely to associate financial independence with their level of income, rather than savings. Almost two-thirds (64%) define financial independence as having a personal income which does not rely upon support from anyone else.
| Women’s top five definitions of financial independence | |
| Having a personal income which does not rely on financial support from others | 64% |
| Having a personal income which covers everyday expenses | 57% |
| Having a personal savings pot which covers unforeseen expenses | 55% |
| Ability to make your own life choices | 40% |
| Having your own plan and savings for retirement | 31% |
Claire Dwyer continues: “Financial independence is essential to creating the life you want to lead. It offers you both peace of mind that you’re prepared for life’s unexpected moments, while enabling you to seize opportunities and make decisions that matter to you – in your relationships, at home, and at work.
“The key to feeling financially independent is to take control. Having a clear picture of your finances will help you to identify where you can make changes to feel more secure. While you may not be able to increase your level of income immediately, you can take steps to understand your spending patterns and manage your outgoings. Similarly, you may not be able to reach your ultimate savings goal overnight – but starting to make small contributions on a regular basis can make a significant difference over time.”
Fidelity International’s steps towards financial independence
1. Take care of your debt
Debt can get expensive, so it makes sense to tackle this first. You may have credit cards and/or personal loans, and often these come as part and parcel with high interest which can really cost you in the long run.
If you can, make it a priority to pay off your full credit card balance each month. If this isn’t viable right now, ensure you pay more than the minimum payment each month as this will allow you to clear your debt far quicker. It’s also worth keeping note of when your payments are due, as overdue payments can have a negative impact on your credit score.
2. Prepare for the unexpected
Life comes with surprises – sometimes good, sometimes not so good. Building an emergency fund can help you to feel more prepared for whatever may occur. One way to save for an emergency fund is to open an easy-access savings account, which you can add to through regular contributions or one-off payments. This way, you can withdraw the money with ease. A popular rule of thumb is to have about three to six months’ worth of your usual salary saved.
You might also want to seek professional financial advice. A financial adviser can help you to understand how best to achieve your goals, while also tackling some of the more complex areas of financial planning.
3. Know your budget
Creating a budget can require time and energy, but overall it’s an excellent way to meet your financial goals. It also helps you to understand your spending habits.
It’s worth looking through your bank statements to see where your money is going. This way you can keep an eye on your regular expenditures, be conscious of any impulsive purchases and see how much you’re saving and investing. You may also notice some unnecessary subscriptions.
4. Remember to save and invest
It’s helpful to set aside a portion of your salary each month for savings and investments. If you automate this and set up a regular direct debit, it may prevent you from spending this money elsewhere.
There are a variety of ways you can save. You can set up a savings account with your local bank or building society. If you’re looking to save in a tax-efficient way, a Fidelity Stocks and Shares ISA may be worth considering, allowing you to save up to £20,000 each year for as little as £25 a month
5. Maximise your workplace pension
In most cases, your employer will make monthly payments into your pension for you, and you’ll also pay contributions directly from your salary. However, there are other ways you can build up your pension savings more quickly.
These include seeing if your employer will match your contributions if you increase the monthly amount you pay in. For example, if you put in an extra 1%, will they add an extra 1%? You could also consider a one-off payment to your pension if you’re able to – for example, from a work bonus.
