MILLIONS of women are financially much worse off than their male counterparts – just because of gender.
This disparity starts in childhood and continues to old age.
Millions of women are financially much worse off than their male counterparts[/caption]
Here Mel Hunter looks at ways to close the gap.
CHILDHOOD
GIRLS start missing out early, with boys getting £3 a week pocket money on average from parents, compared to £2.50 for girls, according to research by Starling Bank.
This 20 per cent extra leaves boys £26 a year better off.
Meanwhile, the bank found that girls’ toys cost five per cent more than boys’ toys, on average.
Young females are also exposed to the idea they are irresponsible with money, with derogatory terms such as “girl maths” swirling round online.
HOW TO FIX IT: If you have daughters, talk about money with them.
Get them saving up for toys they want so they build good habits early on.
Set a good example around the house, too.
For instance, if you are with a partner of the opposite sex, then share money responsibilities equally.
Financial adviser Lisa Conway-Hughes – you can follow her @misslollymoney – says: “Be aware of conversations about money that go on in your house.
“Try to make them positive.
“Prepare your daughter for facing bias.
“Teach girls as well as boys that it is important to invest.”
EARLY CAREER
THE cost-of-living crisis has disproportionately affected women, research suggests.
According to the Young Women’s Trust, 36 per cent of young females 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, which means men can typically get on the housing ladder a 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 spare cash, 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 your money is going to perform better by investing.”
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 paid 9.1 per cent more than women.
Females are a third more likely to provide unpaid care or childcare than men, while almost three-quarters of part-time workers are women.
It means women earn less and therefore have less to save, invest or put in a pension.
They may also stop National Insurance contributions, which affects their state pension.
Divorce can also cost women more, with women often not dividing pension assets, according to Scottish Widows, which means they can 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 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 and tax-free childcare for under-12s (or under-17s 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 enough NI Credits for their pension.
Check 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.
If divorce is a possibility, make pensions part of the discussion.
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).
LATER LIFE
ON average, women live to 82, while for men it is 78, but they have much less money to survive on.
Scottish Widows Women and Retirement Report 2024 found that the average woman is on track to have a pension pot around £100,000 smaller at retirement than men, which is roughly a third smaller.
Women are also more likely to be in “digital poverty” than men, meaning they do not have the means to access many of the best online deals, from shopping to price comparison sites, and also cannot access the knowledge and skills to change things.
HOW TO FIX IT: If you have gaps in your National Insurance record, check if you can use credits to plug the holes.
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 is £31billion in unclaimed funds.
The Government has a free pension tracing service, which you can visit at 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.
Despite a recent surge in claims, pension credit is still going unclaimed by many who need it most, with older households on low incomes missing an average of £2,677 a year.
It tops up your weekly income to £218.15 if you’re single or your joint weekly income to £332.95 if you have a partner.
The threshold may rise for those getting other benefits like carer’s allowance or attendance allowance, meaning more people are eligible than they think.
Pension credit can also open the door to other support including housing benefit, cost of living payments and council tax reductions.
Call Independent Age’s free helpline on 0800 319 6789 for a benefits check.
On average, callers are entitled to £4,000 more support than they realised.
To get help accessing the internet and learning online skills for free, see goodthingsfoundation.org/find-support.
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