New research from HSBC UK reveals the disparities between what men and women do with their money, when it comes to saving or investing.
Two in five people in the UK invest but around two thirds (67%) of women don’t invest their money, compared to 56% of men. In fact, 3.3 million fewer women hold investments in the UK compared to men – a population three times the size of Birmingham.
The main reasons include not having enough money (45%), limited knowledge on investing (27%) and thinking it is too risky (19%). Two thirds (60%) of women believe they will lose out on money if they invest.
Only one in three (31%) of women feel confident about investing vs nearly half (44%) of men. Research reveals a desire to invest but 48% of women are unsure about which platform or provider to use. Two in three (63%) women say they do not know how to begin investing vs under half (46%) of men.
HSBC UK’s Director of Wealth Distribution, Rebecca Owers, notes "women are facing significant barriers when it comes to money. We are living longer but can earn less than our male counterparts. We take more career breaks, but we need to work an extra 19 years to retire on the same pension savings as a man.
“We need to make our money work harder, so it’s important to consider options like investing. Financial education is key here – by talking openly about money and learning the different options available, women can gain the confidence needed to take control of their financial futures.”
The bank has partnered with Katy Hill, performance and success coach, who aims to equip and empower women to get in the driver’s seat of all areas of life. See her top tips below:
- BE HONEST - Complete an audit of your finances and get honest about how things look right now. Avoidance is not an option!
- FUTURE YOU - Ask yourself “Will my future self be grateful I took this action?" Get clear on what the investment will mean for your future. And then, get excited about it!
- COST / GAIN COMPARISON - Ask yourself “What’s the cost of NOT TAKING this action?” “What’s the gain of TAKING this action?”
- VALUES-BASED DECISIONS - Women have been proven to prefer values-based decisions so get clear on your values in life and get curious about which of your values this action supports.
- TALK ABOUT IT! - Talk to your friends about money and normalise those conversations. Typically women hold back on talking about money yet want to learn more about it… so buddy up and start exploring together! When we partner up with goals and get accountable we become 95% more likely to take the action.
- POWERFUL AFFIRMATIONS - Create some powerful affirmations to counter your inner money narrative. “I can create financial freedom and be a good person”, “I can know my worth and ask for it and be living with integrity”
- GET COMFORTABLE GETTING UNCOMFORTABLE! - We’re all hard wired for comfort - which is why you can set resolutions every year and then ditch them by the end of January. Because nothing changes if nothing changes! Those old habits are ingrained. So, decide it’s going to be different! Take control of your finances and do things you haven’t done before for a different outcome.
Find more information here: https://www.hsbc.co.uk/investments/investing-for-beginners/