28 February 2025
The gender wealth gap is the difference between the amount that men and women have in savings, investments and pensions. It’s not new information that women often get left behind because a significant proportion are paid less, invest less and can often be less financially confident.
For this year’s International Women’s Day, Charlotte Tattersall, financial planner at wealth manager RBC Brewin Dolphin shares four practical tips that women should consider when it comes to managing their money:
Improving your financial knowledge doesn’t have to be ‘all or nothing’!
“The world of money has long been considered a man’s game, so don’t be too hard on yourself if you feel that your financial confidence is not as strong as you want it to be. The Married Women’s Property Act, which made women legal owners and inheritors of their own money in marriage, was passed in 1870. That means that women in the UK have only had 155 years to catch up – that’s essentially five generations of women to pass on their financial knowledge, that’s not a lot!
Recognising you could have a gap in your financial knowledge is the first step, with the second step being to take some action to improve this. Reading topical financial articles, browsing the personal finance section of your favourite news app, listening to a relevant podcast on your journey to work or when doing the school run, or even asking some of your personal network for their thoughts and experiences when it comes to finances can all help to improve your financial knowledge and confidence.”
Got savings? Consider how you can get more from your buck.
“We know that women are great savers. According to our recent survey on couples shared finances, 28% of women said that they had their own savings dedicated in case their relationship ends, compared to 18% of men.1 Having an emergency fund, covering three to six months of expenditure is great in case something happens, such as your long-term relationship ending or being made redundant from work. But many savers don’t realise that holding only cash for long-term goals can be a detrimental strategy, as the value is eroded by inflation over time. According to figures published by HMRC in 2024, women hold around 52% of all ISAs, but the majority put their money in cash ISAs over stocks and shares ISAs, whereas a higher proportion of men opted for stocks and shares ISAs.2 If you mainly have cash savings, you might want to consider investing,which may help shield your money from inflation and offers the potential for higher returns than cash over the long-term.”
If you’re in a relationship, make sure you have a clear joint financial picture.
3 With many men earning more and tending to be more financially confident, it’s common for them to be the financial lead in the household – this imbalance can provide yet another hurdle to the gender wealth gap. Communication is key. If your partner earns more than you or you’re likely to outsource the financial planning to your other half, make sure you have insight into the full picture of your financial circumstances and understand your shared financial plan.
Another factor to consider when creating your shared financial plan is whether it is proportionate to both your circumstances and doesn’t hinder your individual wealth plan. Our recent survey on shared finances revealed that 27% of couples equally contribute to their shared finances despite earning a different amount to their partner.4 Not only this, but women were also 4.5 times more likely than men to contribute less to the shared financial pot due to earning less.5It’s good practice to work out what your shared long-term goals are, such as buying property or having children, as this can help you understand your joint and individual saving rate. Don’t forget to take into consideration things that might impact your income, such as maternity or care leave.”
Create a financial plan for the future, now.
“The pensions pay gap is another well heard term, but it is important to pay it some attention. Women receive 35% less pension than men.6 Women’s pension contributions are typically lower than men’s because they are based on a percentage of salary. No matter how much you earn, it’s worth contributing to your workplace pension, as you’ll benefit from top-ups from your employer and income tax relief. Workplace pension contributions are often taken from your gross salary, meaning you won’t pay tax on the amounts invested.
With the changes to inheritance tax (IHT) to include pensions coming into effect in 2027, delays to the probate system post covid and with some potentially having to trace over a decade of auto enrolled pensions – planning for the future is more complicated than ever before. In addition, life expectancy for women is 83 years compared to 79 years for men.7 Therefore, there is a higher risk of being caught out by a confusing system, especially if you outlive a partner who managed the finances. It’s important to ask yourself, how prepared would you be if your partner died now or became incapacitated, do you know what pensions you are both enrolled in, do you have any protection policies in place to help foot an IHT bill? If these questions have you stumped, it might benefit you to speak to a financial adviser, who can recommend the best steps to protect your financial future.”
- RBC Wealth Management Shared Finances Survey 2025 ↩︎
- HMRC Annual Savings Statistics 2024 ↩︎
- ONS Gender Pay gap in the UK 2024 ↩︎
- RBC Wealth Management Shared Finances Survey 2025 ↩︎
- RBC Wealth Management Shared Finances Survey 2025 ↩︎
- GOV.UK The Gender Pensions Gap in Private Pensions 2023 ↩︎
- ONS Life expectancy in the UK 2021 to 2023 ↩︎
-ENDS-
See our wealth management guide for women here
Disclaimers
- The value of investments can fall and you may get back less than you invested. Information is provided only as an example and is not a recommendation to pursue a particular strategy. This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Neither simulated nor actual past performance are reliable indicators of future performance. Information is provided only as an example and is not a recommendation to pursue a particular strategy.
- Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.
- RBC Brewin Dolphin is a trading name of RBC Europe Limited. RBC Europe Limited is registered in England and Wales No. 995939. Registered Address: 100 Bishopsgate, London EC2N 4AA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence.
PRESS INFORMATION
For further information, please contact:
Siân Robertson: Sian.Robertson@brewin.co.uk / Tel: +44 (0) 20 3201 3026
Payal Nair payal.nair@brewin.co.uk / Tel: +44 (0) 20 3201 3342
Georgia Embrey Georgia.embrey@rbc.com / Tel: +44 (0)7704 667 842
NOTES TO EDITORS
ABOUT RBC BREWIN DOLPHIN
RBC Brewin Dolphin is one of the UK and Ireland’s leading wealth managers and traces its origins back to 1762. With £57.6bn* billion in assets under management, it offers award-winning, bespoke wealth management services, including discretionary investment management and financial planning.
Its qualified investment managers and financial planners are based in over 30 offices across the UK, Jersey and Republic of Ireland, with a commitment to high standards of client service, long-term thinking and absolute focus on clients’ needs at the core.
As part of Royal Bank of Canada (RBC), RBC Brewin Dolphin is now able to draw on the strength of a global financial institution to enhance the services it provides to clients and to drive further innovation across the business.
*as at 31st October 2024.
ABOUT RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.