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Pay rises, payday loans, students and savings

6 September 2016

10:20 AM

6 September 2016

10:20 AM

Women do ask for pay rises – they just don’t get them. That’s according to research by Cass Business School and the universities of Warwick and Wisconsin.

The theory that women get paid less than men because they are not sufficiently pushy in the workplace is not true. Women are as likely as men to ask for a pay rise – but are less likely to get one, the study, which looked at 4,600 workers, revealed

It found ‘no support’ for the ‘reticent female’ theory, whereby women avoided asking for more money.

For what it claimed was the first time, the study eliminated any impact from part-time workers earning less than their full-time counterparts, by comparing full-time males with full-time females, and part-time males with part-time females. When like-for-like male and female workers were compared, men were 25 per cent more likely to get a pay rise when they asked.

Payday loans


Payday loan complaints have risen sharply but the list of gripes about financial products is still dominated by payment protection insurance (PPI).

The number of complaints about payday lenders more than tripled to 4,186 in the first half of the year compared with the previous six months. The Financial Ombudsman, which compiled the figures, said borrowers had become more aware of their rights.

Sports Direct

Sports Direct will axe a ‘hierarchically and potentially oppressive’ six strikes firing policy and offer directly employed staff on zero-hours contracts at least 12 hours’ work per week, according to an external review into workplace practices at the retailer.

The Telegraph reports that Sports Direct hired law firm RPC to review employee procedures and corporate governance. In its 88-page report, published today, it found the company guilty of ‘serious shortcomings’, amid a barrage of criticism from shareholders, the media and politicians over the retailer’s business practices.

Students

A third of students would ask their parents for money rather than forego a night out, a new study from Nationwide Flex Student has revealed.

A new study of 500 UK undergraduates was conducted to find out if students are aware how to budget before they begin living independently at university. Almost seven in ten said they were taught insufficiently about finance and were ill prepared for student life, with nearly a third saying they taught themselves everything they know about how to manage money.

Students polled also admitted that the lack of knowledge around budgeting didn’t stop them being frivolous with their student loan. Twenty-nine per cent said that they spend it all within a few months of receiving it, and just over one in ten confessed to spending it in the first month.

Meanwhile, almost half of parents sending their children to secondary school today believe they’ll have to work longer if their kids go to university.

Research carried out by financial services company NFU Mutual found that 46 per cent of parents with children aged 11-15 years expect to work longer as a result of financially supporting their child through university.

Sean McCann, chartered financial planner at NFU Mutual, said: ‘The high cost of university is a financial shock for many parents. If you want your child to go to university, you need to plan ahead. Our research showed that just over a quarter of parents with children aged 11-15 said that university costs are something they anticipate but haven’t planned for yet.’

Savings

Nearly half of clients are engaging with their retirement savings but are struggling to save more, a Royal London survey of financial advisers has found.

Royal London’s Pensions Through The Ages: Feeling The Squeeze research included asking more than 150 financial advisers about the challenges facing their clients when considering saving for their retirement.

While three quarters of advisers with clients aged 35-44 said that they were at least slightly engaged with retirement saving, advisers also flagged that many clients had more pressing financial priorities then saving for their retirement, with 57 per cent believing they would use any extra money to reduce their debts or ease financial pressure.

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