Belfast Telegraph

Friday 24 October 2014

Women 'are saving more than men'

Women are saving a greater portion of their gross average earnings than men, says survey

Women are managing to build up larger savings cash pots then men, despite earning less, research from Halifax has suggested.

The Halifax Savings Report found that women typically have £7,981 put aside, or 40% of their gross average earnings, compared with a figure of £7,657 for men, accounting for 23% of their typical salary.

The only areas of the UK where men were found to have saved more than women were Scotland and the north of England according to Halifax, which used its own savings database to compile the report, alongside official statistics on earnings.

Halifax suggested women's savings were likely to have been boosted by wealthier partners transferring cash into their names for tax purposes, as well as the numbers of older women inheriting money after their husbands had died.

Halifax economist Martin Ellis said: "Two key themes emerge from the Halifax savings survey. Firstly, there is a wide variation in regional balances, and secondly, women appear to be saving more than men.

"Whilst women typically have slightly higher savings balances than men, the difference as a proportion of earnings is quite substantial. Female savers seem to be managing to devote more of their earnings to savings."

The report found that overall, customers in the south of England, including Greater London, the south east, the south west and East Anglia, had a typical balance of £8,734, equating to 29% of gross annual earnings for those regions.

People in the rest of the UK had a slightly lower balance of £7,759 but put a higher proportion of their average income away, the equivalent of 33% of typical local earnings. Savers in Hambleton, North Yorkshire, bucked the north/south trend, by building typical savings balances amounting to £11,316, the equivalent of 58% of average earnings in the area.

Savers in five other local authority districts in the UK also had average balances equivalent to at least half of local earnings - Eden in Cumbria, Christchurch in Dorset, North Norfolk, Waveney in Suffolk and West Devon. The report said these were all popular retirement areas, boosting average savings levels among inhabitants.

In contrast, savers in Islington, a diverse north London community popular with young professionals, had an average of £7,133 put by, a figure only slightly below the national average but the equivalent of 12% of average local earnings and the lowest proportion in the study. Nine out of 10 districts with the smallest savings to earnings ratio were in London, the study found.

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