Investment income earned by women rises 10% in a year to £34.2bn

HMRC statistics released today shows the amount of income earned from investments by women rose 10% last year to £34.2bn, up from £31bn the year before, says Citimark Partnership, the adviser to private clients, trustees and corporates.Investment income includes that earned from interest on bank accounts, dividends from shares in UK companies and unit trusts, rents from UK property and other income sources**.However, women still earned only 55% of the investment income earned by men, which reached £62bn last year, up from £55.3bn over the same period.
Jill Ellicott, Chartered Financial Planner at Citimark Partnership, comments: “It is great to see women earning more income from their investment portfolios. Things are moving in the right direction.”“The strong performance of some UK companies in recent years may have contributed to rising investment income through higher dividends. FTSE 100 dividend payments reached a record of over £90bn in 2019***.”
“There is clearly more work to be done to get women on an even keel with men in terms of investment income. This investment gender gap needs to be closed.”“One simple step that can be taken by women to maximise investment income is to ensure you are making full use of tax reliefs available. Billions of pounds are wasted each year due to investors not structuring their investment portfolios in a tax efficient way.”

“Making use of ISA allowances, marriage allowances and Capital Gains Tax allowances all help.”

“Steering clear or not relying on low-risk low-return cash products, such as cash ISAs, is also important. Cash has consistently underperformed for investors over the long term.”

“Building wealth is easier when after you work out your risk appetite and long term goals. This enables you to structure an investment portfolio that you feel comfortable with and then simply build on it as you earn.”

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