The Silent Wealth Gap For Women

With women retiring with 30% less wealth than their male counterparts, the need for wealth planning strategies tailored to their unique challenges has never been greater. Rhiannon Bagshaw explores how specialised financial advice for women can empower you to close the wealth gap and secure your financial future.

Women retire with 30% less wealth than men on average, underscoring the importance of adopting proactive wealth planning strategies. This financial disparity can significantly impact independence and quality of life in retirement, making expert financial advice for women essential.

Understanding the Causes

The Wage Gap

Although progress has been made to reduce the gender pay gap, women still earn less than men. This discrepancy highlights the need for tailored wealth planning strategies to ensure long-term financial security, particularly for women of colour who face even greater disparities.

Career Breaks for Caregiving

Many women take career breaks to care for children or elderly relatives, losing income, promotions, and pension contributions in the process. For example, a five-year break could mean missing out on £200,000 in earnings and investment growth, particularly in regions like the UK or UAE, where retirement benefits are linked to continuous employment.

‍Longer Life Expectancy

On average, women live five years longer than men, which increases the amount needed to fund a comfortable retirement. For expats, managing international pension systems and self-funded savings plans can make this an even greater challenge.

Conservative Investment Choices

Women often prefer low-risk investments, which may seem safer but yield lower returns over time. This cautious approach can result in a significant shortfall, especially in regions with high inflation or limited employer-provided retirement benefits.

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Strategies to Close the Gap

Start Saving Early

Small, consistent contributions can form the foundation of effective wealth planning strategies, ensuring financial stability in the future. Starting early allows women to take control of their financial journey with confidence. For example, saving AED 700 per month from age 25 could result in over AED 2 million by retirement, assuming a 7% annual return. Starting at age 35 reduces this to AED 1 million, showing the value of acting sooner rather than later.

Invest with Confidence

A balanced portfolio, as part of comprehensive wealth planning strategies, can help women grow their wealth over the long term. With expert financial advice for women, tailored investments align with individual goals and risk preferences.

Plan for Longevity

Given longer life expectancy, saving more aggressively or working longer can help bridge the gap. Skybound Wealth can assist in calculating the funds needed to sustain your retirement and offer tailored solutions to meet these goals.

Secure Your Financial Future

For expats, having a will and guardianship arrangements is essential. Skybound Wealth’s Women Like Us initiative offers workshops and one-on-one coaching to help women make informed decisions about safeguarding their wealth.

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Frequently Asked Questions

1. What are wealth planning strategies, and why are they important for women?

Wealth planning strategies are personalised financial plans designed to help individuals achieve their long-term financial goals. For women, these strategies are crucial in overcoming challenges like career breaks, longer life expectancy, and the gender wealth gap. By adopting tailored strategies, women can ensure financial independence and a secure future.

2. What makes financial advice for women different?

Financial advice for women focuses on addressing the unique financial challenges they face, such as lower average earnings, caregiving responsibilities, and longer life spans. It also considers specific goals like retirement planning, investment diversification, and estate planning to provide a holistic approach.

3. How can women start closing the wealth gap today?

Women can start by creating a budget, saving consistently, and investing with confidence. Seeking professional financial advice is also key to developing effective wealth planning strategies tailored to their needs.

How Skybound Wealth Can Help

Addressing the wealth gap begins with implementing effective wealth planning strategies and seeking expert financial advice for women. Skybound Wealth is committed to helping women take control of their financial futures. Through our Women Like Us network and tailored advisory services, we provide practical tools and strategies to close the gap and secure long-term independence.

Take the first step today. Speak to a Skybound Wealth adviser to build a plan that ensures the retirement you deserve.