Women in the UK are less likely to save, save less each month and are less likely to have pensions provisions than men are, shows new research.

Fifteen million women face a future of low incomes according to the research conducted for Halifax by NOP World.

Women tend to be less likely to have either savings or investments than men, with only 54% having savings (cash–based) (57% men) and 35% holding investments (42% men), a statistic that could owe as much to history as it does to choice.

In addition, men are also more likely to save regularly (31% men: 22% women), whereas women are most likely to save as and when they can (54% women: 43%men). For those men and women who do save regularly, the most common frequency is monthly (79%).

When those who did not save regularly were asked why they did not save more often, almost two-thirds (65%) said they could not afford to or did not have the spare cash. Again there was a gender-split with 70 per cent of women saying they could not afford to, compared with 58 per cent of men.

Saving Less

The amount of regular monthly cash savings, for UK adults, stands at an average of £214 each, however, most (56%) save £200 or less.

The results of the survey again show women as the financially poorer sex, with men most likely to save higher amounts - a third of men (35%), who save regularly, save more than £200 per month, while only 23% percent of women manage to do this.

For investors, habits are very similar between men and women, with amounts invested at irregular intervals being the most common method of investing.

For the 13 per cent of adults that do invest frequently (monthly or more often), the majority (60%) of adults tucked away £200 or less each month, with the average being £160. Women (32%) are twice as likely to invest £50 or lower monthly than men (15%) and are also less likely to invest more than £200 each month (24%: 30%), indicating much lower levels of investment overall.

Men also indicated that they had a greater amount of total savings and investments. More than half of men (58%) who knew their total savings/investment value, and were prepared to discuss it, said they have over £10,000, whereas this proportion is down to 44% for women. The average total savings and investment balance for UK adults is £19,756.

Pension Plans Lacking

Looking directly at savings and investing products, men and women make very similar choices of products. They are both as likely to take out a mini-cash ISA and the same would be true of company sharesave schemes for example.

However, two areas where there tends to be a difference are pensions and shares. A third (34%) of men have a pension plan, while only a quarter (27%) of women do, this echoes findings by the FSA in 2001. For shares the difference is even more marked, 30 per cent of men invest directly in the stock market, whereas only 18 per cent of women take this option.

These findings are set against a backdrop where the savings ratio sits at one of its lowest points in the last 40 years. However, stock market performance during 2003 has become more stable and the seeds of recovery, while fragile, are beginning to be seen. Confidence in the stock market is also returning (source: Halifax/NOP World research 2003) which in turn increases the uptake in longer term investment products.

Commenting, Nick Robinson, Head of Savings, said: "These results are clearly worrying. Everybody should be making some savings provision, even if it is just a few pounds each month.”

“There are significant differences between the position of men and women here and while some will be historic there is a trend that women simply are not saving enough.”

“The savings gap shows neither men nor women save enough but now we see the position for women is worse still.”

Ray Milne, Head of Halifax Financial Services, comments: "While the figure for the total amount invested may seem high to many, when looking at retirement planning a much bigger fund would be required to ensure comfort in later life.”

“Women have historically been in jobs that are less well paid and there is an obvious link with this and the value of savings and investments they may have but the concern is that women are simply less likely to save or invest at all.”

“There is evidence to suggest that women are still discriminated against in pay and access to certain careers and this has an impact on their ability to invest and save. However, there are many women who have overcome these barriers yet still are not making sufficient plans for later life. We should all make some plans for our long-term futures."