2006
(14/06/2006) Earning gap curbs women's saving
- British men save £733 more than women PER SECOND
Women are losing the race to save for the future, according to new research1 from AXA Avenue, the UK's first financial social experiment. The figures reveal that the average female saver sets aside around £1,502 per year less than the average man, with around one million fewer women choosing to save at all.
One of the reasons for the disparity may be linked to the fact that men can still expect proportionally larger pay packets than women. The average annual salary for a woman in full time employment in 2004-05 was £18,148, compared with £22,828 for men2.
The average male saver sets aside a healthy £304 per month, around £125 more than the average female saver, who typically puts away £179 per month. On a national basis, this means that male savers across the country are saving £773 more than women every second.
AXA Avenue's independent financial adviser, Saran Allott-Davey, said: "The earnings gap is closing, and more and more women are becoming the family breadwinners. However, the fact that a difference remains is having an impact on the national savings pot, and female savers are falling short. Unless women can make up the difference, they may find that they have to rely on their partners for extra funds - an option that won't be open to everyone.
Steve Folkard, AXA, commented, "The second quarter analysis from our financial social experiment in Brighton has highlighted how the issue of saving for the future is still a grey area in the minds of the public. There may be many reasons why women do not save as much as men, but it is worrying that the gap is so large.
"The number one goal of AXA Avenue is to help people understand finances and to pose questions of the financial services industry. We hope this latest research will facilitate a debate around savings to emphasise the importance of planning and careful financial management."
For a copy of the full AXA Avenue Quarter Two Review Report, including a financial update of the participants' progress please go to www.axa.co.uk/avenue.
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More information
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Notes to Editors
1 Data based on research conducted by TNS among 2038 people over 16. Fieldwork completed between 7th - 9th & 14th - 16th April 2006. No. of people with debts and savings, including total debt and savings figures, taken from this source.
2 Data from the Women and Equality Unit
About AXA Avenue
The 'AXA Avenue' social experiment launched on 4 November 2005 and will last for one year.
The overall aim of this experiment is to use financial education and planning to help to try to tackle the UK's chronic money problem by offering half the households (the active group) access to expert advice while the others (the control group) are left to their own devices.
About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2005, had € 1,064 billion in assets under management. AXA reported total IFRS revenues of € 72 billion and IFRS underlying earnings of € 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.