More than half of women state they feel financially independent, yet one in ten women lack the financial security to make their own life decisions, Fidelity International study reveals.
According to Fidelity International’s Women and Money study, 53% of women feel financially independent, the highest level in three years, and an increase from 45% in 2022 and 51% in 2023. Almost half (49%) of this cohort said their confidence stems from having an income which covers their outgoings and expenses, while 44% attributed it to being free of debt and 41% cited having a savings buffer. Almost four in 10 (38%) of this group also said they are financially secure enough to live independently and make their own life choices.
However, men still reported higher levels of confidence, with 64% of men feeling financially independent.
Meanwhile, 17% of women said they do not feel financially independent, with more than half (51%) stating they do not have enough money to live independently or make their own life choices and 39% say it is because they are dependent on their partner’s income. In addition, a third (30%) face outstanding debts and a quarter (25%) have outgoings and expenses that exceed their income.
Claire Dwyer, head of investment companies at Fidelity International, said: “Our most recent findings suggest some of the challenges that have affected women’s personal finances, the pandemic, and rising cost of living, may be easing, with the number feeling financially independent at its highest level since 2022.
“While this is a welcome step forward, a clear gender gap remains. Disparities in pay, savings, pensions and investments all contribute to the difference in how financially independent men and women feel. The result is that many women feel constrained from taking control of their financial future.”
According to Fidelity International, women are most likely to associate financial independence with their level of income rather than savings, with almost two thirds (64%) defining financial independence as having a personal income which does not rely on support from anyone else.
The firm said women should look to take care of their debt as a first step, followed by building an emergency fund which can be added to through regular contributions of one-off payments. Women should also create a budget, save and invest on a monthly basis where possible and maximise their workplace pension, Fidelity International said.
Dwyer added: “The key to feeling financially independent is to take control. Having a clear picture of your finances will help you to identify where you can make changes to feel more secure. While you may not be able to increase your level of income immediately, you can take steps to understand your spending patterns and manage your outgoings. Similarly, you may not be able to reach your ultimate savings goal overnight but starting to make small contributions on a regular basis can make a significant difference over time.”
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