Empowering Women in Finance

In recent years, women have reached new levels of financial empowerment and wealth accumulation. According to a UBS report titled “Gender-Lens Investment: The State of Women in 2025,” the number of female billionaires surged from 190 in 2015 to 344 in 2024, marking an impressive growth of 81%. This increase is largely attributed to women entrepreneurs. However, this progress is still dwarfed by the significant 49% rise in male billionaires, which reached 2,338 last year.

The increasing levels of formal education and workforce participation among women are promising signs for gender equity. More women are stepping into management positions, improving prospects for financial independence and savvy financial management.

However, it’s crucial for women, especially those with less education or in low-income sectors, to be aware of the potential challenges they face. Many women also take time off for family responsibilities or caregiving roles, which can disrupt their career progression and lead to lower lifetime earnings compared to men.

The UBS report highlights the “motherhood penalty” as a significant factor contributing to the persistent gender wage gap. Research conducted in Denmark revealed that women experience a 20% long-term earnings gap after having children, beginning with their first child.

Further data from Pew Research indicates a decline in pay parity for American women during their childbearing years. For instance, in 2002, women aged 25 to 34 earned approximately 92% of what their male counterparts made. By 2022, women in the same age cohort (now aged 45-54) earned only 84% of what men earned.

A study from Japan supports these insights, showing that women face earnings penalties with each pregnancy, not because they are absent from the workforce post-pregnancy, but due to systemic factors affecting their earnings.

Over time, employment rates for women have rebounded; however, their working hours and wages have remained stagnant, resulting in a continued earnings disparity. This makes financial planning essential to ensure that women do not outlive their financial resources.

Here are four key financial strategies for women to stay in control of their finances:

1. Embrace Financial Independence

Women should strive for financial independence and not rely solely on partners or family. With women generally living five years longer than men and often facing health challenges later in life, it is essential to build a substantial financial cushion for retirement.

Moreover, after addressing family expenses, there may be little left in the family finances. Therefore, it is vital for women to actively engage in money management, empowering themselves with financial knowledge to make informed choices.

While I’ve often stated that “a man is not a financial plan,” I urge women to collaborate with their partners, particularly when major investments like homeownership or joint accounts are involved.

Steps to take:

• Develop a long-term financial plan to mitigate uncertainties and improve money management.
• Conquer financial jargon by gaining knowledge in budgeting, credit management, and long-term goal planning.
• Acquire a skill set to enhance earning potential through side gigs if needed.

2. Stay Engaged in Family Financial Affairs

Many women tend to leave financial decisions to their more financially savvy partners. As indicated in the UBS report, women typically assume the role of the family’s chief financial officer by managing budgets and bills, while men often lead in investment decisions and retirement planning.

Despite the trend, a concerning number of millennial women (51%) claim they would defer major financial decisions to their spouses after marriage, though 88% express a desire to be involved in long-term financial planning while single.

It’s crucial to consider potential challenges such as divorce or the death of a spouse. Lack of preparedness can lead to unmanageable outcomes regarding finances and debt responsibilities.

Taking the reins on financial matters can secure your future, especially in case of separation or divorce, where women often find themselves in a worse financial position.

Findings suggest:

• Even if you prefer your partner to manage finances, ensure you have access to all accounts and stay informed on financial transactions.
• Verify the existence of a financial plan addressing liabilities like mortgages or loans, including how these will be funded.
• Consider establishing a separate savings account for personal goals to maintain financial independence and stability.

3. Optimize Your Investments

Research suggests that women investors exhibit strong investment behaviors. They tend to conduct thorough research, stick to their investment strategies, and manage risk more effectively than their male counterparts.

Steps you can adopt include:

• Focus on making your money work for you through disciplined saving and investing.
• Commit to a regular savings plan to build a fund that can be invested according to your risk appetite.
• Maintain a balanced investment portfolio to keep pace with inflation and create sustainable wealth for retirement.
• Familiarize yourself with government retirement schemes to enhance your financial security.

4. Prepare for Life’s Uncertainties

Since women tend to live longer than men, they may face the challenge of aging without a partner to help care for them. Furthermore, women are at a higher risk of certain health complications, including chronic conditions and critical illnesses.

To safeguard against these risks, consider the following:

• Invest in adequate long-term insurance to secure your financial future in the event of a loss.
• Choose insurance policies that cover female-specific health issues and critical illness.
• Regularly review insurance coverage to ensure it meets the rising cost of healthcare during retirement.