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.”

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement Advertisement