29% of Women Save Less than £100 Each Month. Here's How We Can Bridge the Savings Gap

Less saved, less invested, less choice.

Nearly twice as many women as men save less than £100 a month. Only 17% of women feel confident about their long-term financial goals. Alyssa Jaffer on the structural forces behind the gender savings gap, what it costs women across a lifetime, and the practical steps worth taking now.

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In the next five years, $30 trillion will pass into the hands of women. That figure, cited by Ida Liu, global head of Citi Private Bank, is frequently used as a marker of progress, and in some ways it is. But it sits alongside a different set of numbers that tell a more complicated story.

Nearly twice as many women as men save less than £100 each month, 29% compared to 15%, according to a Women and Wealth report by Schroders Personal Wealth. Only 17% of women feel confident about achieving their long-term financial goals, against 29% of men. And just 26% of women hold a Stocks and Shares ISA, compared to 45% of men. Wealth may be shifting. The conditions that shape how women engage with it are shifting more slowly.

"The gender savings gap refers to the difference between men and women when it comes to the amount of money saved or invested," says Katie Nutting, financial planning director at Schroders. "This gap spans across cash savings, investments and pensions, and can have significant long-term financial consequences for women."

The drivers are structural rather than personal. The gender pay gap leaves women with less disposable income to save or invest. Career breaks for caring responsibilities and raising children reduce both income and pension contributions. The motherhood penalty, the well-documented drop in women's employment prospects after having children that never fully recovers, compounds the effect over time. And women's tendency to favour cash savings over investments, while understandable, works against them in the long run. "Holding more cash may feel safer," Nutting says, "but over time, cash typically loses value due to inflation. Investments have the potential to grow and compound, which can help create significant long-term wealth." The risk of not investing is, over time, its own kind of risk.

The consequences of the savings gap extend well beyond spreadsheets. "This has implications for financial resilience, meaning less power around making life's important decisions," says Lisa Picardo, UK chief business officer at PensionBee. Financial empowerment, she argues, is not just about managing everyday expenses. It is about having the freedom to plan for the future, to make choices driven by what you want rather than what you can afford.

Dr Heloïse Greeff, investor at eToro, speaks to this from personal experience. "Being in control of my finances gave me the freedom to leave an unhealthy relationship and pursue a career aligned with my passions rather than one dictated by necessity." The savings gap, in this framing, is not just a financial issue. It is a freedom issue.

Closing it will require structural change at an employer and societal level. But there are also steps worth taking now, and the experts are clear on what they are.

Start with a financial plan. Understand your income, your expenses, and what surplus can be directed towards longer-term savings or investment. A financial adviser can help map this out and review it regularly. Alongside that, build the habit of paying yourself first, setting aside savings before anything else, as a signal of intent as much as a practical measure.

Make use of tax-efficient wrappers. ISAs and pensions allow your money to grow without unnecessary tax drag, and most people are not using their full allowances. On pensions specifically, even increasing your contribution by 1% makes a meaningful difference over time, and if your employer offers matched contributions, maximise them. It is, in effect, a pay rise you are leaving on the table if you do not.

For money you will not need within five years, consider investing rather than holding in cash. It does not have to be all or nothing. Investment options can be matched to your risk appetite and time horizon, and starting small is considerably better than not starting. Many digital banking apps now offer automatic rounding-up features that funnel spare change into savings without requiring any active decision. Small amounts, consistently directed, compound into something significant.

Finally, know your worth and negotiate accordingly. The more you earn, the more you can save and invest. Research salary benchmarks for your role and industry, prepare for reviews with data rather than hope, and do not undersell yourself. The gender pay gap feeds directly into the savings gap. Narrowing one helps narrow the other.

"Closing the gender savings gap would enable women to have the same financial opportunities, security and independence as men," Picardo says, "creating a more equitable future for all." The structural work belongs to employers, policymakers and the financial services industry. The individual work belongs to each of us, and the best time to start it is now.

This feature is produced in partnership with eToro and PensionBee.

When investing, your capital is at risk. The information provided here is for general guidance only and does not constitute personalised financial advice. Please seek independent advice tailored to your individual circumstances.