The Gender Gap We’re Not Talking About but Need to Address

I’ve lived in Asia for 10 years, and have been fortunate to be immersed in the vast, incredible cultures of the East. Being of Indian heritage, there are many values around work, family and money that I’ve been able to relate with being here. But there are many more I’ve only got a glimpse of.

When I launched Saij Elle, I wanted to get a better pulse, and heard directly from women and men, about how they think about money and what roadblocks they face in achieving financial security. I had read dozens of studies on the topic which were U.S. or U.K. based, but I was hard-pressed to find this information in Asia. And knowing that cultural values play an enormous role on monetary beliefs, I was skeptical in making conclusions based on data from another region.

So, I partnered with YouGov, an international and analytics organisation with deep research expertise. Six-thousand participants answered our questions, across 6 markets, various life stages, income levels and professions. They told us a lot. 

Below is a subsection of the data:

Here’s what it tells us:

Women in Asia are entrusting “high-stake” finances to others, putting them at risk

When it comes to making decisions related to their personal finances, the majority of women are more likely to delegate these to their partner or another family member. Only 38% of women in Asia say they are the primary decision makers when it comes to their own retirement planning. Nearly one in five married women (18%) completely depend on their spouse to make the financial decisions related to retirement on their behalf, and 28% of single women solely rely on other family members to make retirement plans.

We know planning for one’s retirement is one of the most important undertakings a person can take. It’s very likely that we all will spend as many years (if not more) in retirement spending money as we did actually earning it. There’s also a high probability (at least 80%) that women will need to manage that money on their own – as a result of never being married, a divorce or separation or death of a spouse.

Cultural expectations are keeping women back

Women typically are the caregivers in the home, and have traditionally made personal and professional sacrifices to fulfil this role.

So it’s not surprising that the only two areas where more women than men are the primary decision-makers are when it comes to their children’s education (39% men vs. 45% females) and household budgeting (44% men vs. 46% women). 

It’s heartening to see women take the lead in both cases because ultimately, money management starts at home. However, we know that building wealth and financial security encompasses much more than paying a bill.

Saving for such things as one’s retirement and property requires a huge financial investment as well as savvy, discipline, and well…discussion. There’s a lot more at stake here and these can’t be approached with a singular view. Nor should they be entirely delegated.

Yet, our survey showed that when it came to buying property, 40% of men said it was primarily them who made the sole decision. More women than men delegated the decision to their spouse (women 15% vs. men 10%) or family member (women 24% vs. men 20%). In fact, the chart above shows that in none of the financial aspects are women primary decision makers (all are below 50%). 

The gender gap we’re not talking about

We know women lag men when it comes to wages. But women also lag in financial literacy, and more broadly financial capability – the ability to use their financial knowledge to interact with financial services in such a way to secure their future.

We can speculate why this may the case – perhaps it’s that women lack confidence, or are too busy, or view risk differently. Regardless of the underlying reason – this is a problem. It’s a problem we all need to care about and work together to solve.

Given women are half the world’s population and have an 80% greater chance of falling into poverty than men during retirement – there is very little doubt in my mind that this financial capability gap, if not closed, will be damaging to our social and economic structures. We can also be certain governments will not have billions of dollars to throw at the issue.

So what can be done?

First, our education system and governments need to wake up. Not only must financial literacy courses be made mandatory for all students, the impact of gender biases on one’s economic success must also be brought to light. Only then will women and men be able to see the challenges they face and prepare adequately. Financial education is a basic life skill, just like reading and math. 

Second, we women need to start taking control of our finances. When I see that we control 30% of the global wealth, that we are finally making (some) progress in participating in the work force, securing senior positions and narrowing the wage gap, why then are we blindly handing over our financial security and future to someone else? We must have the money discussion with our partner and parents. We must take a seat at the table when meeting the advisor. We must invest in our future because no one else will. 

Third, leaders in financial services also play a vital role in helping women close the gender financial capability gap. I’ve been encouraged by the discussions and focus towards diversity, leadership and inclusion. I’d add that, unlike any other sector, the financial industry is in a privileged position to educate and directly support female clients and employees in achieving financial security. Set up a financial wellness program, hold workshops, insist your advisors meet both partners when discussing finances…I have no doubt that a) you’ll have a happier, engaged and empowered female workforce and b) your brand loyalty will improve.

If you’d like more information, you can send me a message at [email protected]. Thoughts?