54% of women in the UK consider their financial plans for retirement to be below average or poor, according to the Women’s Financial Wellness Barometer research, conducted by SmartPurse among over 2,500 international respondents.
47% of the British women surveyed rate their ‘safety plan’ for emergencies or unexpected life events as below average or poor. Some 48% overall rated themselves as similarly below average to poor when it comes to being prepared for bigger life events and having basic documents such as insurances or a will in place.
Meanwhile, 60% of UK women consider their financial planning to be poor or average when it comes to planning ahead for the next 12 months, five years, or decade. In fact, 48% of those surveyed consider their understanding of major financial concepts such as risk, compounding and diversification to be below par, while almost two thirds rate their comprehension of investment options such as stocks, bonds, ETFs or robo-advisors as below average.
Despite these findings, most women rate their financial knowledge as ‘average’, while 77% have a clear understanding of how much their work is worth and how much they possess, and have confident conversations with family and friends about finances (73%) – a figure which has increased over the last year.
Women also want their money to make a difference and are ready to act: more than half of those surveyed (57%) rate themselves as good to very good when it comes to wanting to make a difference with their money.
Released to mark the launch of its innovative new financial education app, the SmartPurse research also found that 55% of respondents are unaware how financial services providers could help them, or how products are priced, while 62% stated they don’t know how to find a professional advisor they trust.
Olga Miler, SmartPurse co-founder, said: “The pandemic and its uncertainties have led to a number of women becoming much more confident with their finances, but the rest of the survey shows just how important education is to women when it comes to maximising their financial futures.
“As a practical introduction to the world of investment or even just planning for retirement, existing methods aren’t helping women who want to learn. Our services aim to change that by mixing inspiration from leading and accessible experts in various financial products, alongside practical and fun ways that women can learn more about how to make the most of their money.”