A focus on short-term finances means that many women have been unable to create a financial plan to meet their long-term goals, which is affecting their financial well-being, according to a new report.
Women are three times more likely to be responsible for budgeting food than men (51% versus 17% of men) as well as for children’s clothing (73% versus 8%), household help costs (27% versus 9%) and short-term savings (53% versus 9%) . 33%) according to the new index study on the financial well-being of the pension and investment provider Aegon.
However, they had far fewer financial plans for the future. Over half (53%) of women said they did not have a budget, compared to 45% of men.
A greater number of women also struggled with their general financial well-being. Over four in ten (42%) said they were struggling with their financial well-being, compared with 31% of men. Likewise, only 12% of women said they are able to combine healthy finances and a positive money attitude, compared with 21% of men.
When it comes to long-term saving, 61% of men said they were responsible, compared to 36% of women.
Aegon’s report examined people’s answers to a range of questions that measure both their household wealth and the health of their money holdings. Mindset measures included how healthy people’s social comparison is with their money, their financial literacy, but also factors such as long-term financial planning, a clear picture of their future selves, and an idea of what makes them happy.
When asked how much thought was given about their financial goals in life, 28% of women said a lot, compared to 33% of men. Associated with this was a clear separation of the proportion of men and women who had a clear picture of their future selves. Women performed worse in this measurement in every age group and it took up to the age of 55 to almost close the gap with men.
Steven Cameron, Aegon’s Pensions Director, said the results demonstrated the need for couples to create joint financial plans with a shared understanding of long-term goals. He said: “This gives both partners a clear idea of their common and individual priorities and everyone knows what they are working towards. Finding a balance between good daily budgeting and a long-term plan is a critical part of financial well-being and, most importantly, could prevent many women from suffering from poor financial well-being. “
Aegon surveyed 962 adults from the Aegon Feedback Community between July 6 and July 20, 2020.