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14 Aug 2018

Four tips to close the gender worry gap

Back in April, the UK’s 2018 gender pay gap report made uncomfortable reading. Three-quarters of companies pay men more than women on average, and while a typical company is 52 per cent male, 63 per cent of its highest paid jobs are done by men.

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However, when it comes to worrying about money, women are leading the field. In Neyber’s DNA of Financial Wellbeing 2018 research, 66 per cent of women said that they are worried about their finances, compared with 59 per cent of men.

More than one-third of women suffer from stress as a result of money, compared with 25 per cent of men, and 29 per cent of women are losing sleep over their finances (as are 23 per cent of men). A slightly higher number of women than men, 22 per cent compared with 20 per cent, say that they are depressed because of money worries.

Neyber’s survey found that women are also saving less than men. About 44 per cent of men are paying into a pension, but only 35 per cent of women are doing so. Women save £255 a month on average, compared to £367 for men. And, 36 per cent of women (28 per cent of men) say that they have less than a month’s worth of savings to fall back on.

There are plenty of ways in which employers can help women to begin to close the gender worry gap. Here are four tips to get started:

1. Make sure everyone knows about financial benefits at work

A pension might seem like a luxury if finances are tight. However, if staff opt out of a company scheme, they are missing extra money from the employer as well as affecting their retirement prospects. Good quality communications about pensions, as well as other benefits such as affordable loans, can help to ensure women (and men) make the most of what’s on offer.

2. Build financial knowledge

Starling Bank analysed articles from women’s and men’s magazines and found that money matters are often handled differently when the audience is female. It found that 65 per cent of articles aimed at women characterised them as spenders and ‘splurgers’. In comparison, 60 per cent of articles aimed at men talked about investment and assumed that men were informed savers.

Help staff to cut through the noise by building their financial knowledge. That could be through websites such as the Money Advice Service, as well as through offering financial education or advice in the workplace.

3. Use savings products to create an emergency fund

Building a personal emergency fund is a vital part of financial wellbeing. Having money to fall back on to pay unexpected expenses or to cover a shortfall in income helps everyone to feel in control of their finances. Give staff support in finding appropriate savings products, or consider offering a workplace ISA.

4. Encourage employees to have a financial plan

It’s more effective and motivating to save with a specific goal in mind. That could be a short-term aim, such as a holiday, or a longer-term plan like saving for retirement. Help all employees create their own financial plan – and support them in building the good financial habits they need to make it happen.

This article was provided by Neyber.