Although gender disparity in finance is well documented, the issue continues to persist, according to the latest study commissioned by financial wellbeing platform nudge global.
Globally, 50 per cent of women across all age groups experience financial anxiety, compared to just 41 per cent of men, nudge global has revealed after looking into gender disparity.
The latest edition of its annual Financial Wellbeing Report found that 45 per cent of women in the US aged 25 to 34 feel anxious about their financial situation, compared to just 39 per cent of men in the same age group. nudge global also found that 69 per cent of men aged 25 to 34 in the US feel hopeful about their financial situation, compared to 58 per cent of women.
Andrew Mulder, people director at nudge global, also said: “These findings highlight significant disparities in people’s abilities to navigate financial wellbeing challenges. This global trend offers employers an opportunity to understand the extent and underlying reasons for these challenges within their organisations. By doing so, they can help women build long-term financial security and feel more optimistic about their futures.”
Having surveyed over 11,500 employees worldwide, nudge found that this trend is also prevalent outside of the US.
In the UK, 67 per cent of women aged 25 to 34 feel anxious about their current financial situation, compared to less than half (43 per cent) of men in the same age group. In Japan, 67 per cent of women aged 25 to 34 feel financial anxiety, compared to 44 per cent of men in the same age group.
Approaches to financial planning
The report also highlighted different approaches to financial planning across both groups. Over half (54 per cent) of women aged 25-34 surveyed said they only have a short-term financial plan of three years or less in place. In contrast, 52 per cent of men in the same age group have a long-term financial plan (three years or more).
“When it comes to financial planning and stability, women encounter various barriers compared to men,” explained Grace Massey, chief marketing officer at nudge global. “Globally, women still grapple with a persistent gender pay gap, earning 24 per cent less than men.
“There are many factors changing between cultures that contribute to this, what we see consistently in our data is 84 per cent of women worldwide have a specific life goal of supporting their family. As a result, this leaves many women juggling their money management alongside family planning, and childcare decisions, resulting in heightened financial anxiety and insecurity compared to men.”
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