Women less confident choosing financial products

New survey reveals that women are less assured in their choice of financial products and unable to save as much as men

Women are saving less than men and are significantly less confident in choosing the right financial products, according to a new report by the Pensions and Lifetime Savings Association (PLSA) and Close Brothers.

The Lifetime savings challenge report 2017 surveyed 1,000 employers with 200 or more employees and 2,009 employees from companies with 200 or more employees.

From that sample, only 36 per cent of women said they were confident in their ability to choose an appropriate financial product, compared with 45 per cent of men.

Furthermore, 42 per cent of female employee respondents do not think they have a large enough salary and workplace benefits to save.

Women were reportedly saving nearly a quarter less than men in non-pension savings (£221 vs £305), while the average amount in a female worker’s workplace pension is less than half that of their male colleagues.

The survey also highlighted a lack of knowledge and confidence in how to save properly, with only 40 per cent of employees assured in their ability to choose the most appropriate financial product to achieve their savings ambitions.

Employers, it seems, have a big part to play – 75 per cent of employee respondents stated that their employer has not provided any financial education to help them understand what savings choices exist.

Scottish Widows’ head of individual propositions, Catherine Stewart commented:

“Employers of all sizes can support their workers with financial education and it doesn’t have to come at a cost. Due to automatic enrolment, all employers have or soon will have an ongoing relationship with a pension provider and they may be able to offer financial education content and tools at no cost.

Scottish Widows has been researching and reporting on the gender savings gap for 13 years. This year we launched a new guide for employers, which addresses the key issues that tend to underpin the gap and includes information that employees might need to know.”