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Press comment: Are women better savers than men?

23/10/2018

Office for National Statistic’s analysis released today shows for young people, aged 16 to 29 years, the level and growth of median annual earnings were generally lower for women than men, whether they were degree- or school-educated, or had no qualifications. 

However, separate figures show women of that age group have a higher average pension wealth than men.

Jon GreerJon Greer, head of retirement policy at Quilter, comments:

Are women better savers than men? It’s a hard question to definitively answer but the figures are pointing that it may in fact be true as 16 to 29 year old women are still earning less than men, but have larger private pensions.

Figures from the ONS reveal that on average  younger women no matter their background or ethnicity are still earning less than their male counterparts. For example, men in this age group with a university education in London earn, on average £27,081 while women with same background earn about £24,767.* A gap in earnings between genders for those just entering in the workforce is astonishing, but there may be a number of factors at play, including the kind of occupation each are entering and the average starting salary of those occupations.  

The earnings figures come as further surprise when considering the average pension for these groups.

Historically, men have had a substantially higher median pension value than women, but that trend has begun to reverse in recent years.  Numbers from the ONS show that women aged 16 to 24 have about £3,900 in a pension compared to men who have about £3,000. The gap becomes starker at ages 25 to 34 when women have about £14,400 in a pension, while men have £12,100.

With lower earnings, but more in their pensions, there seems to be one logical conclusion – younger women are better savers than their male peers. Saving more from a young age is of vital importance because of the magic of compound interest. Auto-enrolment has gone a long way to boost pension participation in the workplace, but with the current contribution levels still low supplementing with additional savings is crucial.

 

*Figures from Table 7 of young people’s earnings dataset  

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.