In recent years, the financial challenges unique to single women have garnered increasing attention. Societal biases and financial disparities continue to disadvantage single women, despite them being well educated, ambitious, and financially independent. A recent article in Investors’ Chronicle1 highlighted how societal biases and financial disparities continue to disadvantage single women.
Many prominent women including Taylor Swift, Emma Watson and Jennifer Aniston have become lightning rods for criticism simply because they remain single and without children. Their critics argue that by embracing a life outside traditional expectations they set a poor example for younger women who look up to them as idols. Yet, their success and independence illustrate a broader trend among modern women who are redefining what it means to live on their terms.
Shifting priorities
Staying single is becoming increasingly common, with the percentage of women aged 20-39 who are married dropping from 56% in 1991 to just 31% in 20212. Women are choosing to prioritise their education and careers over the traditional roles of marriage and raising families and this shift has led to a new set of challenges.
Financial disparities
The gender pay gap means single women struggle to get on the housing ladder more than single men and married couples. Their lower income means women spend a larger portion of their annual earnings on rent – on average 43% versus 28% for men3 making it more difficult to save for a house deposit.
Savings and pensions paint an equally grim picture. Lower income means single women save less and accrue £1,000 less in emergency savings than a single man, making them more vulnerable to financial setbacks than men4.
Additionally, the gender pension gap reveals that although women generally outlive men, their retirement savings are dramatically lower5.
Bridging the investment gap
Official statistics report that 13% of single men invest, compared to just 10% of single women. This leads to a massive gender investment gap. In the UK this equates to £15,000,000,000. Women hold £14.3 billion in investments while men hold £29.3 billion6 (according to market research by Kantor).This disparity is not merely about income; it reflects a broader hesitation to take financial risks
I discuss this in my two self-help books, 10 Things Everyone Needs to Know About Money, and What Every Woman Needs to Know to Create Financial Abundance. The irony is that when women do invest, they tend to outperform men. Research by Warwick Business School shows that women outperformed the FTSE 100 by an annual 1.94%. Men by 0.14%7. A separate study by Hargreaves Lansdown reinforced these findings with women outperforming men by an average of 0.81% over a three-year period8. Hargreaves observes that if this pattern continued for 30 years, the average woman would end up with a portfolio worth 25% more than the average man.
So why do women seemingly have this fear of investing in the stock market?
Lower emergency savings are potentially one reason for making women more risk-averse. And the fact that the investment advisory world is overwhelmingly dominated by men often means that advice is not tailored for women, by women.
However, taking calculated investment risks, particularly at a younger age, can significantly impact long-term financial security. The power of compound returns means that, for instance, investing in low cost and relatively low risk options like index tracker funds, especially with dividends reinvested, can help women achieve their goal of long term financial security.
Empowering women to take control
The financial services industry is beginning to recognise the particular needs of women. Firms such as Fidelity International are leading the way, with the majority of their advice team being female and offering tailored financial advice for women. Their ‘Power of Small Amounts’ calculator demonstrates how a 30-year-old on the average annual salary of £37,5449 could increase her retirement savings by £69,100 simply by contributing just £7.75 more per week to her pension.10
Despite these advances, more needs to be done to ensure that single women are not left behind. We need to be proactive, to engage with the world of stock market investing, and to start dipping our toes in the water before diving in more fully. I offer advice in both self-help books on how to do this, particularly in a tax efficient manner via investing within ISAs.
Redefining success
The narrative that single women are somehow failing because they are not adhering to traditional life paths is outdated and harmful. Taylor Swift’s life is a testament to the fact that women can – and should – create their own definitions of success. As someone who has navigated the challenges of a male-dominated industry – investment banking – I know first-hand the importance of taking control of your financial future.
It’s time for single women to embrace their financial power, invest confidently, and challenge the biases that hold them back. The future belongs to those who are willing to take the reins and drive their own success. You don’t need to follow the traditional path – as Taylor Swift’s songs remind us, we can shake off expectations and gender double standards and instead choose to live life our way.
If you’re ready to take control of your future and make meaningful changes, I offer personalised coaching packages designed to empower you in all areas of your life – personal, professional and financial. Email me to schedule a complimentary Discovery Call on Zoom, where we can explore how I can support you on your journey.
Sources:
1: ‘How to beat the ‘single woman’ penalty’ Laura Miller, 23-29 August 2024, Investors’ Chronicle
2: Citivas ‘Who gets married and who doesn’t – evidence from the 2021 census’
3. The Women’s Budget Group: “A Home of Her Own: Housing and Women”
4. Trustnet “AJ Bell: The life events that adversely hit women’s finances”
6. Centre for Economics and Business Research (Cebr) for Kantar
7. The Gender Investing Gap is Real and the Statistics Are Here to Prove It (femaleinvest.com)
8. Are women better investors than men? | Unbiased
9. Average UK Salary By Age In 2024 – Forbes Advisor UK
10. Power of Small Amounts (fidelity.co.uk)
Money Mastery Method with Linda Davies 
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