• According to Fidelity International’s annual Women and Money study, more than half (53%) of women feel financially independent – ​​the highest figure in three years
• However, almost one in five (17%) do not feel financially independent – ​​more than half (51%) of this group are therefore unable to make their own life decisions.
• “Differences in salaries, savings, pensions and investments contribute to differences in the way men and women feel financially independent” – Claire Dwyer, Fidelity International

Fidelity International yearly Women and money Study shows that more women feel financially independent than at any time in the last three years.

According to Fidelity’s research, more than half (53%) of women feel financially independent. This figure has increased in 2022 (45%) and in 2023 (51%). While these results paint an improving picture, the impact of the gender financial gap remains evident – in comparison, 64% of men are confident in their financial independence. The number of women who do not feel financially independent has also fallen from 24% (2022) to 17% over this period.

Measuring Financial Independence 2022-24

Of those women who feel financially independent, almost half (49%) attribute this to having an income that covers their expenses and costs. Other key factors include being debt-free (44%) and having a savings buffer that allows them to pay for unexpected expenses (41%). Almost four in ten (38%) of this group say they are financially secure enough to live independently and make their own life decisions.

More than half (51%) of women who do not feel financially independent say they do not have enough money to live independently or make their own life decisions, and 39% say they are dependent on their partner’s income. Almost a third (30%) are in debt and a quarter (25%) have expenses and costs that regularly exceed their income.

Claire Dwyer, Head of Investment Companies at Fidelity International, commented: “As part of our commitment to understanding and addressing gender finance gaps, we began measuring feelings of financial independence among women. Our recent findings suggest that some of the challenges that have impacted women’s personal finances – the pandemic and rising living costs – may be easing. The number of women feeling financially independent is at its highest level since 2022.

“While this is welcome progress, a clear gender gap remains. Differences in pay, savings, pensions and investments all contribute to different levels of financial independence between men and women. The result is that many women feel prevented from taking control of their financial future.”

What does financial independence mean?

Women are more likely to associate financial independence with the level of their income than with savings. Almost two-thirds (64%) define financial independence as having a personal income that does not depend on the support of others.

Claire Dwyer continues: “Financial independence is essential to creating the life you want to live. It gives you the confidence to be prepared for life’s unexpected moments, while allowing you to seize opportunities and make decisions that matter to you – in your relationships, at home, and at work.

“The key to feeling financially independent is taking control. Having a clear view of your finances will help you see where you can make changes to feel more confident. While you may not be able to increase your income immediately, you can take steps to understand your spending habits and manage your expenses. Likewise, you may not reach your ultimate savings goal overnight – but if you start making small, regular contributions, it can make a significant difference over time.”

Fidelity International’s steps towards financial independence

1. Take care of your debts

Debt can be expensive, so it makes sense to deal with it first. You may have credit cards and/or personal loans, and often these come with high interest rates that can really cost you in the long run.

If possible, you should make it a priority to pay off your entire credit card balance each month. If that’s not possible right now, make sure you pay more than the minimum payment each month, as this will help you pay off your debt much faster. It’s also worth keeping an eye on when your payments are due, as overdue payments can negatively affect your credit score.

2. Prepare for the unexpected

Life throws up surprises – sometimes good, sometimes not so good. Building an emergency fund can help you feel prepared for anything that might happen. One way to save for an emergency fund is to open an easily accessible savings account that you can top up with regular deposits or lump sums. That way, you can withdraw the money easily. A popular rule of thumb is to have about three to six months’ worth of your usual salary saved.

You may also want to seek professional financial advice. A financial advisor can help you figure out how best to achieve your goals, while also helping you with some of the more complex areas of financial planning.

3. Know your budget

Creating a budget can take time and energy, but overall it’s a great way to reach your financial goals and help you understand your spending habits.

It’s worth looking through your bank statements to see where your money is going. This way, you can keep track of your regular spending, become aware of impulsive purchases, and see how much you’re saving and investing. You might also notice some unnecessary subscriptions.

4. Remember to save and invest

It’s helpful to set aside a portion of your salary each month for savings and investments. By automating this and setting up a regular direct debit, you may be able to prevent yourself from spending that money elsewhere.

There are lots of different ways you can save. You can open a savings account with your local bank or building society. If you want to save in a tax efficient way, a Fidelity Stocks and Shares ISA might be worth considering. This could save you up to £20,000 a year for just £25 a month.

5. Maximise your company pension

In most cases, your employer will pay into your pension on your behalf each month and you will also pay contributions directly from your salary. However, there are other ways you can build up your pension savings faster.

For example, check whether your employer will double your contributions if you increase the monthly contribution amount. For example, if you pay 1% extra, will your employer match 1% extra? You could also consider a lump sum payment to your pension if you are able to do so – for example, from a work bonus.