The Silent Wealth Gap For Women

With women ending their careers with 30% less wealth than their male counterparts, Rhiannon Bagshaw explores how you can close the wealth gap and secure your financial future.

Women retire with an average of 30% less wealth than men, a financial disparity that can affect independence and quality of life in later years. Understanding the reasons behind this gap is the first step toward taking control and ensuring a secure future.

Understanding the Causes

The Wage Gap

Although progress has been made in closing the gender pay gap, women still earn less than men, with even larger disparities for women of colour. Over a 40-year career, these lost earnings can amount to hundreds of thousands of pounds, directly affecting the ability to save for retirement.

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 add up over time. 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 that includes growth-oriented investments can help build wealth over the long term. Skybound Wealth’s advisers specialise in creating strategies that suit individual needs, ensuring investments align with personal 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.

How Skybound Wealth Can Help

Addressing the wealth gap requires a combination of planning, knowledge, and expert guidance. 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.