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Press releaseNS&I’S “CENTURY OF SAVING” REPORT SIGNALS A GENDER SHIFT IN FINANCIAL HOUSEHOLD POWER03 August 2007A Report on Savings 1957-2057
50 years from now large numbers of women will have taken over a traditional preserve of men by taking control of key financial household decisions, signals NS&I’s (National Savings and Investments) Century of Saving report issued today. As a result, they will be taking an increasingly tight control of finances and boosting the nation’s savings, signals the report which explores the evolution of the UK’s savings culture from 1957 to today, and looks at significant trends for the next 50 years. The independent report was conducted for NS&I by think tank The Future Foundation to mark this year’s 50th anniversary of Premium Bonds. The analysis is based on a range of authoritative sources, including the Expenditure and Food Survey, the British Household Panel Study, the Family Resources Survey and Future Foundation’s Changing Lives data and is available from the NS&I news centre (link). The study found that 37% of households saved regularly in 1957, when saving was a weekly occurrence – usually cash in a biscuit tin – rising to 43% today. A steady continuation in this trend is expected with a rise to 50% of households saving regularly by 2057, bringing the total volume of savings to £150 billion from £43 billion today, and less than £1 billion fifty years ago at constant 2003 prices. 1 Gender equality and women’s role in household financesOver the past 50 years, disposable income has risen and roles within the household have changed, with women contributing an increasing proportion of household income and taking on greater responsibility in household consumption decisions. This has resulted in changes to the way in which households manage their financial arrangements. The report reveals that by 2057 significantly more women will have the final say in major household financial decisions - a dramatic shift from the 1950s when women were kept in the dark about their husband’s earnings. In 2007 men in 20% of households made key financial decisions, falling from 22% in 1992, while over the same period the proportion of women having the final say rose from 10% to over 12%. Based on these trends, the Future Foundation forecasts that a shift in power will occur by 2020 when, for the first time, more women than men will make the final decision on household finances. Increasing earning powerAlthough women continue to earn less than men (£1,080 a month versus £1,486)2, they are catching up fast, particularly at younger ages. Twenty-something women earned a wage equivalent to 93% of men’s wages in 2000, rising to 96% today – a trend that, if it continues, will see women in this age group overtake men in 2015. While women’s incomes have traditionally been curbed by their role as a “stay at home” parent, 27% of 16-24 year-old women now say they would prefer to be the main breadwinner3. Considering this and the educational advantage women already have4, the Future Foundation predicts that women could be the main earner in around one in four couples by 2030, up from 14% today5. William Nelson of the Future Foundation comments: “In 2007, we are seeing the emergence of a generation of women who are better educated, more ambitious, and more financially confident than any before them. This generation is already more likely to handle day-to-day financial matters than their male partners, and demands to have at least an equal say in the big decisions.” Dax Harkins, NS&I’s senior savings strategist, adds “Women have a stronger hand to play than in the past, and will be the key decision makers in many households within a generation. NS&I’s own Quarterly Savings Survey shows that women are consistently aspiring to save more than men6, so this should help drive higher savings levels in the future.” Ends Notes to editors: 1. Source: Family Expenditure Survey (replaced in 2001 by the Expenditure and Food Survey). Savings does not include pensions but does include all other savings and investments - deposits into savings accounts, purchasing bonds, shares, unit trusts etc. 2. Source: NS&I’s Quarterly Savings Survey, Spring 2007 3. Source: Future Foundation primary research 4. Overall, a decade ago (1995/6), 141,677 UK women obtained a higher education qualification, compared to 129,559 men. By 2005/6, 313,435 UK women obtained a higher education qualification, compared to 207,270 men. In 1970, there were 3 male graduates to every 2 female, whereas today there are 3 female graduates to every 2 male. 5. Source: Future Foundation, Complicated Lives report 6. Women consistently aspire to save a greater proportion of their earnings than men, according to NS&I’s Quarterly Savings Survey.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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