The gender asset gap is greatest in the run up to retirement, with men in their 50s possessing significantly more in assets than women, new research from Unbiased has revealed.
The findings show an asset gap of £116,000 between men and women in their 50s, jumping from £50,000 in their 40s, before reducing to £35,000 in their 60s.
Women possess on average £60,000 less in assets than men, with men accumulating £220,425 compared to £160,030 for women.
However, Unbiased said the dynamic flips when both sexes reach their 70s. From this age, the asset gap grows to £217,000 in favour of women.
The reversal is possibly due to the Great Wealth Transfer, as women are more likely to receive assets due to a longer life expectancy, inheriting assets when a loved one passes away or after a divorce, or by building their own wealth. According to The Centre for Economics and Business Research, women are forecast to own 60% of UK wealth by the end of 2025.
Unbiased’s research also found that women are 45% more likely than men to include inheritance under their overall asset wealth. Over half (57%) of men said they plan to leave assets to a female partner, compared to only 28% of women who plan to leave assets to a male partner.
Karen Barrett, founder of Unbiased, said: “It’s disappointing to see a huge asset gap between men and women amid the greatest wealth transfer in history.
“However, it’s positive to see that the asset gap usually gets smaller as women get older and either build, inherit or acquire wealth, as part of the Great Wealth Transfer.
“There are many factors impacting the asset gap, but one way to help reduce it is to empower women to seek expert financial advice, so they can make decisive and informed plans for the future and preserve any assets they inherit.”
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