Savings: For women, it's all about income

Women's relationship with saving—particularly for retirement—is primarily influenced by their income. 

Despite the stereotypes associated with their relationship to money and retirement, savings decisions depend more on their financial resources than on gender-related factors, according to Sarah Le Gouez of the Cercle de l’Épargne. Women, 

Although women are often responsible for managing the family budget, men have historically played a dominant role in major financial decisions. However, this dynamic is changing, with a shift toward greater balance in financial decision-making observed among couples in recent years.

Income disparities remain the main obstacle to women’s ability to save. Although these disparities have narrowed in terms of wages, they remain significant in terms of wealth, with an increase observed over the years. Career choices and family responsibilities play a major role in these disparities, as women are often confined to less lucrative career paths and bear a greater burden in balancing work and family life.

As a result, women save less than men, and their investments are generally less focused on long-term holdings. They are also more likely to seek financial security and avoid risk, which is reflected in their investment choices. A lack of confidence in their financial knowledge can also influence their investment decisions, leading them to seek more professional advice.

The issue of retirement is of particular concern to women, due to the significant gender gap in pension benefits. Women’s retirement pensions remain significantly lower than men’s, leading to increased anxiety about their future financial situation. This concern results in lower retirement savings and a later start to retirement planning compared to men.

In conclusion, women face specific challenges when it comes to saving and retirement, particularly due to persistent wage inequalities and traditional gender roles. Greater wage equality, increased awareness, and measures to boost women’s financial confidence are needed to reduce these disparities and promote better financial preparedness for the future.