Overcoming financial hurdles: four key challenges for women

From the gender pay gap to longer life expectancy, these obstacles can make financial planning seem daunting. However, with the right strategies and support, women can overcome these challenges and achieve their financial goals.

Investing is a powerful tool that can help bridge the gap and secure a brighter financial future. By understanding and addressing these key challenges, women can take control of their finances, make informed investment decisions, and build lasting wealth.

1. The gender pay gap

The gender pay gap significantly impacts the gender investing gap. Investing can be the difference between a having a great career and having a great future. Currently, men not only earn more but they also invest more. Here are three main reasons for the disparity:

The financial sector has historically been designed for men, by men. It is a male dominated industry, but now, with women’s wealth on the rise, there is a growing movement to ensure women feel confident and comfortable in the industry.
Women generally have less disposable income due to lower pay.
There is a lack of female representation in high-ranking roles. As of 2024, women only held 8% of CEO positions in the FTSE100.¹

2. Maternity and childcare

Women often spend less time in the workforce than men, as they are typically primary care givers, taking time off to give birth, and look after children or elderly relatives. These career interruptions can slow progression and reduce earning capacity, affecting investable assets and pension pots. Not only that, but women are more likely to prioritise spending on others before themselves.

3. Divorce

Divorce can present unique challenges for women. During a divorce, assets accumulated during the marriage are divided. It’s crucial for women to make appropriate changes, such as cancelling joint accounts, retitling assets, updating account beneficiaries, reviewing insurance coverage and updating estate plans.

Many women who have been in traditional male breadwinner model marriages may find themselves managing their finances alone for the first time. Those with primary custody of children often strive to keep the family home, sometimes sacrificing liquid assets that could impact their financial security.

4. Longer life expectancy

The average 40-year-old female has around a 1 in 10 chance of living to 100.² Here are a few things to think about when it comes to preparing for later life:

How we can help
At Brooks Macdonald, we understand the unique financial challenges women face. Our team of experts are here to provide personalised advice and support tailored to your specific needs. Whether you're planning for retirement, managing investments, or navigating life changes, we're here to help.

Get in touch with us today at [email protected] for a free, no-obligation conversation. Let's work together to help secure your financial future.