On International Equal Pay Day 2024 – 18 September – “we must push for change and support the financial needs of women,” says Jackie Boylan, head of Investor Servicing, Fidelity International.
Established by the United Nations, International Equal Pay Day is commemorated annually on . The day aims to raise awareness for the gender pay gap and inequality globally.
The stark financial disparities between men and women remain. Now is the time for the industry and policymakers to step up, break down these barriers and empower women with equal financial opportunities.
According to Fidelity International’s latest Women and Money study, the average pre-tax income for women in the UK stands at £23,520, significantly behind men’s £36,230. While the gender pay gap remains a pressing issue, it’s only one part of the wider picture as the gap extends beyond salaries. Women, on average, earn less than men and are less likely to have savings, investments or pensions in place. Our research has found that only 28% hold investments compared to 51% of men. The disparity in pension pots is even more striking, with women holding an average of £51,780, compared to £82,760 for men.
These financial inequalities are exacerbated by factors such as part-time work and caregiving responsibilities, which disproportionately affect women. The research reveals that 18% of women have seen a decrease in income over the past year, nearly three-times the rate for men. In fact, when asked why their income decreased over the past 12 months, one in seven (14%) women say this is due to spending time to care for relatives, and one in nine (11%) say that it was due to going on maternity leave. Almost a quarter of women (23%) cite taking time out of work to look after children as a factor that has impacted their personal earning potential, compared to just one in ten men.
While our findings reveal the challenges women face in the UK, many of the challenges women face when it comes to financial empowerment exist around the world. We must push for change and support the financial needs of women, through measures such as improved parental leave, flexible working conditions and better access to financial tools and opportunities.
