More women are taking the financial lead: Here’s how to plan for a successful financial future

The financial landscape in the UK is undergoing a significant transformation. Money Marketing highlights research from the Centre for Economics and Business Research (CEBR), which predicted that women would control 60% of the UK’s wealth by 2025.

This surge in financial power, whether from inheritances or the success of female-led businesses, places women in a stronger financial position than ever before.

This is undoubtedly a cause for celebration, but it also highlights the importance of ensuring that women and their families are proactively preparing for these shifts. Fortunately, taking control of your financial future is within your reach, regardless of your current level of experience.

Let’s explore the growing financial influence of women in the UK and discuss strategies you can use to plan for a successful and independent financial future.

Women are achieving greater financial parity

The prediction that women will control a substantial 60% of the UK’s wealth isn’t just an isolated statistic. It reflects a potential shift in the distribution of assets, with women now managing a larger proportion of the UK’s total wealth than at any other point in history.

This growing wealth is also translating into a greater sense of financial independence among women in the UK. According to IFA Magazine, in 2024, 53% of women reported feeling financially independent. This marks an 8% increase from 2022.

Research from HSBC also shows that 48% of high-earning women are now saving and investing regularly. Moreover, they’re putting away 8% more than men every month.

You could be wondering: “What is contributing to this shift?”

Instead of just one factor driving this change, it’s likely a combination of many.

Longer life spans

According to the Office for National Statistics (ONS), the average life expectancy at birth is 82.8 years for women and 78.8 years for men. This increased longevity often means that women are more likely to inherit assets from their spouses later in life and manage those assets for a longer period.

Educational achievements

Women tend to attain higher levels of academic achievement than their male peers, and a report from the UK Parliament supports this. This educational success could lead to more diverse and higher-paying career opportunities. It’s important to note, however, that factors such as the gender pay gap might still be at play here.

Evolving societal roles

Traditional societal norms that once positioned men as the dominant party where money is concerned are now shifting towards a more equal split. More women can find financial independence outside of a relationship, and many have greater access to education and work. Plus, mothers and fathers are now taking a more equitable approach to parenting and work.

Despite improvements, there are still challenges to overcome for women

It’s important to note that despite obvious progress, many women continue to experience systemic financial disadvantages, including:

• The gender pay gap. Women, on average, still earn less than men for comparable work, limiting their ability to accumulate wealth.
• Pension inequality. Due to factors such as career breaks for caregiving and the pay gap, women often retire with smaller pension pots than men.
• A lack of investment knowledge and confidence. HSBC suggest that women may invest less often or more conservatively than men, potentially missing out on opportunities for growth.

Fortunately, these challenges are not impossible to overcome. In fact, by taking proactive steps now, women can continue to build a more secure and independent financial future, making their money work effectively for them.

Three strategies women might wish to consider for a more independent financial future

To navigate the UK’s financial landscape and build a more financially secure future, women could consider implementing the following strategies with the support of a Financial Planner.

1. Make the most of tax-efficient saving and investing opportunities

Building a pot of tax-efficient savings could be a powerful way for women to grow their income, regardless of their current earnings. Individual Savings Accounts (ISAs) offer a valuable opportunity to save or invest each tax year without paying Income Tax or Capital Gains Tax on the interest or returns earned.

Each tax year, you can save or invest up to £20,000 and with the 2025/26 tax year now upon us, it could be a good time to get started.

2. Prioritise your pension contributions

Building a robust pension pot could be crucial for long-term financial security and peace of mind in retirement. Talking to a Financial Planner can help, not only for valuable insights, but to ensure that you’re on track to meet your goals.

If you identify a shortfall, increasing your pension contributions, even by a small amount, can significantly boost your retirement income.

Maintaining regular pension contributions, even during career breaks, can help to strengthen your retirement fund and bridge the gender pension gap.

3. Work with a Financial Planner to boost your investing confidence

For women who find the idea of investing daunting or complicated, seeking professional advice could be beneficial. A Financial Planner can help you create an investment portfolio that is tailored to your individual risk tolerance, investment time frame, and long-term financial objectives.

Their guidance can help demystify the investment process and empower you to make informed decisions about your money, leading to potentially greater growth over time.

This is something we can help with.

Get in touch

Whether you’re building your wealth, managing inherited assets, or planning a secure retirement, we’re here to provide expert guidance tailored to your unique circumstances.

If you’re an existing client here at PenLife, get in touch with us to schedule a review. If you’re new, talk to us about how we could help you build an independent and secure financial future.

Email us at enquiries@pen-life.co.uk, or call 01904 661140 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

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.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

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.