Tackling the Gender Pensions Gap: A Collaborative Initiative by FinTech Scotland and Phoenix Group
In a significant move towards addressing the long-standing issue of the gender pensions gap, FinTech Scotland has partnered with the Phoenix Group, the UK’s largest long-term savings and retirement company. This collaboration aims to harness financial innovation to create solutions that empower women in their financial futures.
Understanding the Gender Pensions Gap
Research conducted by Phoenix Group’s think tank, Phoenix Insights, highlights a troubling trend: women are often left behind in terms of pay and pension savings at critical life stages. This disparity is not merely a statistic; it reflects real-life challenges that many women face, including career interruptions due to caregiving responsibilities, the impact of the menopause, and the financial ramifications of divorce. The findings reveal that by their 40s, women save an average of 34% less for retirement than men, and this gap widens to 51% by their 50s.
The Women’s Innovation Forum
To combat this issue, the newly established Women’s Innovation Forum, alongside TCS COIN (Co-Innovation Network), aims to foster collaboration among fintech startups. The goal is to encourage these startups to pitch innovative solutions that can effectively address the gender pensions gap. With a network of over 200 companies, FinTech Scotland is well-positioned to facilitate this initiative, bringing together diverse perspectives and expertise.
A Call for Innovative Solutions
Claire Hawkins, the executive sponsor of the scheme and Phoenix Group’s director of corporate affairs and investor relations, emphasizes the urgency of this initiative. She states, “Far too many women are not saving enough to meet the income levels they want or expect in retirement.” This initiative is not just about numbers; it’s about empowering women to take control of their financial futures.
Hawkins expresses a passion for improving women’s financial literacy, confidence, and capability. The forum seeks organizations that can propose creative, scalable, and effective solutions to bridge the gender pensions gap. By engaging women in discussions about their financial futures, the initiative aims to help them make informed decisions that can lead to better retirement outcomes.
The Application Process
Startups interested in participating in the Women’s Innovation Forum are encouraged to submit their proposals online. The deadline for applications is September 10th, with final pitches scheduled for December. Proposals will be evaluated based on their potential impact, scalability, and originality. This structured approach ensures that only the most innovative and effective solutions are considered.
The Role of FinTech Innovation
Nicola Anderson, CEO of FinTech Scotland, underscores the importance of fintech innovation in addressing the retirement savings gap. She notes that engaging and empowering citizens in their financial futures is crucial for building financial inclusion in the UK. The retirement savings gap is a growing concern, particularly for women, and Anderson believes that fintech can play a transformative role in changing this reality.
By collaborating with the Phoenix Group, FinTech Scotland aims to discover bold and transformative ideas that enhance women’s financial knowledge and capabilities. The initiative is not just about closing the gap; it’s about creating a future where women can confidently navigate their financial journeys.
Conclusion
The partnership between FinTech Scotland and the Phoenix Group represents a proactive step towards addressing the gender pensions gap. By fostering innovation and collaboration, this initiative aims to empower women, improve their financial literacy, and ultimately help them achieve the retirement they desire. As the deadline for applications approaches, the anticipation builds for the innovative solutions that will emerge from this important forum.