Womens finances are coming more under pressure as the cost-of-living crisis has disproportionately impacted women’s finances and their ability to withstand the potential impacts of a recession.
Over a third (36%) of women would not be able to afford their everyday expenses should the UK enter a recession, compared with just a quarter (26%) of men, according to new research from Quilter.
The cost of living crisis has had more of a disproportionate impact on women’s finances than the pandemic, according to the research. 31% of women said that they are in a worse position financially than this time last year. Comparatively, just 25% of men feel the same way. Previous research from Quilter said that one in five women (21%) felt they were worse off financially at the end of 2021 than they had been the year prior, compared to 18% of men.
Men were much more likely to consider themselves to be financially resilient to a recession should one materialise.
One in five (21%) men said they were in a better financial position that they were last year, and that their current finances and earnings would allow them to manage their daily expenses should the UK enter a recession. Just 15% of women expressed the same sentiment.
For 2024 women are expecting to face greater financial pressures than men. One fifth (21%) of women said they do not expect to have any disposable income available in 2024, compared to 17% of men.
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Angela Davy-Makwana, Financial Planning consultant at Quilter, said: “Our research paints the picture that women are disproportionately facing considerable financial pressures because of the cost-of-living crisis and are fearful of the prospect of a recession, with a third reporting they are in a worse position financially than this time last year. The UK has so far narrowly avoided a recession, but we are not out of the woods yet and it is concerning that more than a third of women feel they would not be able to afford their everyday expenses should one materialise.
“Though it is positive that the government is exploring the impact the cost-of-living crisis has had on women, more must be done to ensure that women feel financially secure. For those who are feeling the strain of the cost-of-living crisis and are concerned about the prospect of a recession, it is important to act sooner rather than later when it comes to assessing your finances and taking steps to improve them.
Quilter and YouGov surveyed 2,001 adults between 11 and 12 December.
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