Is wealth for women where it could be?
Knowing that there are a million things on the to-do list but not knowing where to start is really overwhelming.
That feeling is normal for everyone from all walks of life, from women in high management, running businesses, working part time or a full-time mother.
We all have the same worries:
What happens to my kids if anything happens to me?
What is the impact if I stop having an income?
How can I cut back on spending without reducing the rewards?
How can I ensure I can have more security and worry less about the future?
What would women’s wealth look like without all the extra obstacles we face?
What would it look like for women and their money, if all women were given the opportunity to achieve the highest financial position without any barriers? What would wealth for women look like? What would that look like for you, or your family, or society as a whole?
Would we see families from all walks of life holding onto money and passing it down the generations more, creating a legacy, reaching the grandchildren?
Would we see more women choosing to work differently, not doing jobs they hate?
Would we see more women retiring earlier or leaving relationships they don’t like, taking longer maternity leave or having more children?
Would we see women spending their money differently, changing markets and society with the power of spending?
Would we see more women giving to charity and starting to change the world?
Would we see more ethical investments, therefore more ethical businesses invested in?
I believe we would. Can women and money reach the stages of their potential?
Women ARE getting wealthier, but is it enough to close the gap?
Apparently by 2025, women are poised to take control of the bulk of Britain’s wealth, according to a report from the Centre for Economics and Business Research (*2).
It said women currently own 48% of the UK’s personal assets but this would rise to 60% by 2025 as women reap the dividend of better qualifications, more equal pay, higher levels of home ownership and that longer life expectancy.
That report was written in 2005. We have seen the shifts but, as a society, are we really as far ahead as we would expect?
The Centre for Economics and Business Research predicts that by 2025 women will own 60% of the nation’s personal wealth. The study, carried out for the Liverpool Victoria Friendly Society, found there were already 47,355 female millionaires aged between 18 and 44, compared with 37,935 men (*5).
Women are achieving better qualifications than men at GCSE and A-level. More women than men go on to higher and further education.
When women move into employment, they still encounter gender discrimination. Gross hourly earnings are 83% of the male average, though this does compare to 63% in 1970.
Liverpool Victoria said: “Given the increasing levels of education, success amongst women – coupled with the changes in mix of professions – this is expected to rise to at least 90% by 2025.”
The future of finance for women
Nearly two-thirds of women aged 20 to 24 live away from their parents, compared with 44% of men. Single women are more likely than single men to own their own home and are well placed to benefit from increasing property prices. Women who marry are likely to outlive their husbands, so wives are more likely to inherit their husbands’ wealth than vice versa. Women live, on average, until 81, while male life expectancy is 76.6 years.
Liverpool Victoria also said: “This change will come about due to the rise of a cohort of financially sophisticated younger women, adding to the traditional sources of female wealth, such as marriage and inheritance.”
But women are less likely than men to make long-term financial plans or start a pension. The Friendly Society said single women were much less likely to have mortgage protection, employment protection or permanent health insurance.
The future is bright for Women’s wealth
I am seeing more higher-earning career women making more empowered decisions every year, but the progress is slow and I wonder what can be done to speed up this evolution.
Our history and personal stories will give many of us the answers to that, we all have a story to tell and how that sets us up for success or failure. Let’s hope women and money can achieve the great success and their potential.