IWD: 'Pink tax' a key barrier to long-term saving for women

An increased cost of living and the impact of the ‘pink tax’ have been highlighted as key issues for women when saving, with research from PensionBee revealing that 14 per cent of women view life being more expensive as a key barrier to long-term saving.

The survey found that women were facing more pressure to spend money elsewhere, with 46 per cent of female respondents and 41 per cent respondents in agreement that this pressure is a barrier to investing in long-term saving.

Around two in five women and one in three men also agreed that it costs more to be a woman because of the ‘pink tax’, with feminine-branded products often more expensive than those marketed to men.

Indeed, the provider highlighted findings from a 2021 analysis from Red magazine, which revealed that a number of products, from clothing to personal care, are 32 per cent more expensive for women.

However, just 9 per cent of male respondents agreed that life being more expensive as a women is a key barrier to investing in long-term saving, supporting previous findings from PensionBee, which suggested that greater recognition of savings barriers is needed to address the gender pensions gap

PensionBee CEO, Romi Savova, commented: “Our survey highlights the discrimination women face when it comes to purchasing essential items, and the impact that societal pressure to spend can have on our finances.

“From more expensive shampoo and haircuts to clothes and even dry cleaning, these costs add up over a lifetime and significantly impact women’s ability to build long-term savings.

“It is wholly unacceptable that in 2022 women and girls continue to pay more than men for basic products.

"Consumer brands must urgently review their pricing strategies and make the necessary changes, whether that’s reducing the cost of goods aimed solely at women, or creating gender neutral products.

“In order to improve pension savings rates among women we must stop penalising them at every turn and abolish the ‘pink tax’ once and for all.”

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