Women shunning pensions and ISAs in favour of savings accounts

Almost half of women (46%) are deciding to hold their long-term savings in a savings account instead of “more tax-friendly options” such as a pension or ISA.

This is according to research by Scottish Friendly and the Centre for Economics and Business Research (Cebr).

The research also found 33% of men opt to use pensions, compared to 24% of women.

In the study, long-term savings were defined as “thinking longer than five years ahead”, such as saving for retirement, a deposit on a property or starting a business.

Despite the Bank of England’s (BoE) recent decision to keep interest rates on hold at 5%, there is speculation it could still be cut gradually before the end of the year.

This could negatively impact women, as the real-term value of money held in savings accounts will be eroded with each rate cut.

Additionally, official government data shows that women are still being paid just 91p for every £1 their male counterparts earn.

Scottish Friendly savings specialist Kevin Brown said: “Women are already having to work harder for their money, so it would be a travesty that they then lose out on further building up their hard-earned savings through tax-efficient wrappers and jeopardising future plans as rate cuts start biting.

“Whatever sits at the root of what appear to be gender choices, as an industry and as a socially responsible modern mutual, we need to ensure parity of savings’ growth opportunities.”

To obtain these results, Scottish Friendly and the Cebr spoke to 2,600 UK adults aged between 18 years and 65+.

Short-term financial goals were described as being goals up to six months ahead and medium-term goals as being between six months to five years ahead.

If you're concerned about the impact that the anticipated interest rate cuts could have on your savings, talk to us about your investment options.

We're a female-led team who are passionate about helping women to get the most out of their retirement, and we'd love to have a chat with you about the best way to do that for you.

Give us a call on 0191 380 4106 or email aimee@7fp.co.uk to have a friendly, no obligation chat with us about your retirement plans.