Women on average hold £100,000 less in financial assets than men, according to a study that examined gender wealth disparities in the UK.
The research by, Handelsbanken Wealth and Asset Management, found that women continue to lag men in financial education, confidence and literacy, meaning they are “considerably worse off than their male counterparts”.
For example women hold an average of £147,000 in financial assets, compared to £250,000 for men.
The report ‘Gender and generation: unravelling the wealth gap’ showed that just 18 percent of adult women feel they received a good education at school on how to manage money compared to 24 percent of men.
For younger people the contrast is clearer. Nearly half (46 percent) of men under the age of 30 said they had received a good education, compared to 28 percent of women in the same age bracket.
This gender gap in financial literacy and confidence in investment markets and products has impaired women’s ability to build wealth, the report said.
More women than men in every age bracket admitted to having limited or no understanding of financial products such as investments, mortgages, pensions, and insurance. Notably, more than two thirds (69 percent) of women claimed to have little or no knowledge of investments compared to 43 percent of men, while more than half (56 percent) of women admitted to the same for pensions, compared to 37 percent of men.
High-risk investing
The research found men were much more comfortable taking a high-risk, high-reward approach to investing, while women were more risk-averse. Nearly half (46 percent) of women stated they would feel uneasy about picking an investment with the potential for large gains but also the risk of large losses, with a third (34 percent) saying they would never pick a high-risk investment at all. Meanwhile, only 10 percent of men admit to feeling very uncomfortable with the idea.
Given their lack of financial confidence, it comes as no surprise that women feel more comfortable discussing their finances with other women – potentially feeling less judged or belittled. The research showed that on average, more than two-thirds (69 percent) of women would prefer to speak to a female financial adviser, although this does flatten with affluence – 71 percent of women with less than £100,000 in financial assets would prefer a woman, compared to 54 percent of those with over £100,000.
PK Patel, head of wealth management at Handelsbanken Wealth and Asset Management, said: “The gender wealth gap created by historical and systematic factors will take many years to close out, particularly as young women still feel that they have not received a proper financial education. Building financial literacy and confidence among women of every age is key to turning the tide and reaching an equal level of wealth generation.
“As wealth advisers, our goal is to address this disparity by empowering women to feel confident and secure in building a stable financial future best suited to their needs, be that through checking our own biases and behaviours as trusted advisers, holding women-centred events, or directing customers to the best available learning resources.”
