In the 2016/17 tax year, the average man had £29,448 in an ISA compared to women who had an average of £25,837 saved*.
Why are women more cautious with savings?
Women are likely to take less risk with their savings and opt for a Cash ISA; 30% more men hold a Stocks & Shares ISA*. This may be one of the reasons that men have more saved in ISAs than women as investments in a Stocks & Shares ISA have greater potential to grow in value when the stock market rises over time whereas Cash ISA’s have historically low interest rates. Although stock market performance is not guaranteed.
In recent years, the gender pay gap has been highlighted as a sign of inequality in the workplace between men and women. It is possible that income inequality has impacted the amount that women are able to save. Men earn more so they are able to save more and take greater investment risks.
How can women grow their savings?
Leaving all of your savings in cash means that inflation will erode your assets over time.
Once you have an easy-to-access emergency fund of three to six months of expenses, you could consider transferring any existing Cash ISA’s into a Stocks & Shares ISA which offers greater long term potential.
At Four Wealth Management, our Financial Advisers recommend investing in a Stocks & Shares ISA as a longer-term savings solution, typically at least five years to give your assets a chance to potentially grow.
Find out more about investment planning opportunities
How to start investing
If opening or transferring to a Stocks & Shares ISA is something you are considering but you are unsure how to start, contact us to book a no-obligation telephone or face-to-face meeting with one of our Financial Advisers.
Your Financial Adviser will work with you to understand your financial goals and recommend investments suitable to your circumstances. Your ISA will be continually monitored to help keep it on track to meet your goals.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
An investment in a Stocks and Shares ISA will not provide the security of capital associated with a Cash ISA.
The favourable tax treatment given to ISAs may not be maintained in the future, as they are subject to changes in legislation.
*Source: HMRC, 2016/17 Tax Year
