It was just 50 years ago that the Sex Discrimination Act 1975 allowed women to open their own bank account or take out a mortgage alone. Progress has been made since then, yet the gender wealth gap remains.
Indeed, according to an April 2025 article from Legal & General, the gender pay gap was 13.1% in 2024. This has an immediate effect on short-term finances and larger implications when you calculate the impact it has on long-term wealth.
For example, at the age of 50, the average man has almost £85,000 in a pension. The average woman has less than half this at just under £40,000.
So, women could find themselves at a disadvantage when managing their finances when compared to their male counterparts. Read on to find out why working with a financial planner could help women close the gender wealth gap.
1. Improve your financial confidence
One of the reasons that some women experience a wealth gap is a lack of financial confidence, which leads to them taking a risk-averse approach to their finances.
A March 2024 survey carried out by HSBC found that 2 in 3 women don’t feel confident enough to invest, and 1 in 4 avoid investing because they feel like they don’t have the necessary knowledge.
If you want to increase your wealth, investing may provide a way to generate returns that are higher than the interest rate you’d receive from savings and inflation. However, investing does come with risks, and this puts off a significant portion of women, so they miss out on potential returns.
Working with a financial planner means you have someone you can turn to when you have questions about investing or another aspect of your financial plan. Knowing they’ll offer advice that considers your circumstances could give you the confidence to invest.
2. Make career breaks part of your financial plan
Another key reason for the gender wealth gap is that women are more likely to take a career break to look after young children.
During this time, you may pause pension contributions and other steps that build long-term wealth, such as making regular investments.
A financial plan can incorporate your career breaks and identify where there might be a shortfall as a result. For example, if your plan shows you may fall short at retirement, you may prioritise continuing contributions while you’re caring for children, increase contributions when you return to work, or delay your retirement.
By assessing the long-term effect of a career break, you can weigh up the implications and be aware of how you could close potential wealth gaps.
3. Offer support during a relationship breakdown
A relationship breaking down is often an emotionally difficult time. For many women, it’s also financially challenging.
According to an April 2025 survey from Legal & General, women’s incomes are cut in half following a divorce, and it leaves 24% of them in a financially vulnerable position. As well as losing the income of a partner, women are twice as likely as men to reduce working hours post-divorce to accommodate childcare responsibilities.
This reduced income not only places pressure on your immediate budget but also affects your ability to save for the future.
In addition, 28% of women waive their right to a partner’s pension as a part of a divorce settlement, which creates further retirement risks.
Seeking professional financial advice when you’re dealing with a break-up might be the last thing on your mind, but it could help you understand your new financial position and, if you’re divorcing, which assets you might be entitled to.
4. Create a plan that allows you to retire in confidence
As mentioned above, women often have less saved for their retirement, which could place pressure on their finances later in life. This is further compounded by women having longer life expectancy on average, meaning the savings they do have will need to stretch even further.
Working with a financial planner could help you see if you’re on track to have “enough” in your pension to provide the income you need, make additional contributions if necessary, and review how your money is invested to get the most out of it.
Creating a retirement plan that’s tailored to your financial circumstances and lifestyle goals could help you approach retirement with greater security and peace of mind.
Contact us to talk about your wealth
If you’d like to create a tailored financial plan that helps you get the most out of your wealth, please get in touch.
Please note:
This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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