Accelerate Action: Eight Financial Tips to Support Female Empowerment

Written by Jen Eathorne

This International Women’s Day, celebrated on March 8 2025, is an opportunity to reflect on the progress women have made towards financial independence, while acknowledging the challenges that remain. Despite significant progress, women continue to encounter distinct financial challenges, underscoring the need for comprehensive and strategic financial planning. By adopting smart financial habits, women can take control of their wealth and build a secure and financially independent future. Outlined below are eight key approaches to consider:

Prioritise Financial Education

A 2024 study by Equitable found that while most women feel confident managing day-to-day finances, only 29% feel confident about retirement planning, and just 20% feel confident about investing. ¹ Understanding the key pillars of financial planning, such as asset allocation, risk diversification, and tax efficiency can bridge this gap and foster financial independence. Women can improve their financial literacy by talking to trusted advisers, joining financial education programs, and having open discussions about money with their families. A holistic understanding of finances is crucial, especially during life changes such as divorce or the loss of a partner.

Close the Investment Gap

Female participation in the stock market has increased by 18% from 2023 to 2024.² However, many women still allocate a disproportionate amount of their wealth to cash rather than long-term investments, limiting financial growth, especially in inflationary environments. Women can benefit from diversified investment strategies, including stocks, bonds, pensions, and alternative investments. Studies suggest that despite being more risk-averse, women often outperform men in investing due to their disciplined, long-term approach. ³ Seeking professional investment advice or joining investment networks can help tailor portfolios to align with risk tolerance and financial goals.

Negotiate Salaries and Benefits

The gender pay gap remains a challenge. As of April 2024, full-time female employees in the UK earned, on average, 93 pence for every pound earned by men, a 7% gap. ⁴ Negotiating salaries and advocating for comprehensive benefits, such as employer pension contributions, stock options, and flexible working arrangements, can significantly impact lifetime earnings. Research shows that employees who negotiate their salaries earn substantially more over time than those who do not. In fact, failing to negotiate can cost workers over £500,000 in lifetime earnings by age 60.⁵

Plan for Career Breaks

Women are more likely to take career breaks for caregiving responsibilities, often at the expense of pension contributions and long-term financial security. Ensuring pension continuity by making voluntary National Insurance payments, contributing to personal pensions, or exploring alternative income streams can help bridge these gaps. Additionally, phased returns or flexible working arrangements can help maintain financial stability while balancing caregiving responsibilities.

Work with a Financial Adviser

Financial planning is crucial, particularly during life transitions such as divorce. A woman’s household income drops by an average of 41% after divorce, compared to a 23% decline for men, according to the US Government Accountability Office. ⁶ Working with a financial adviser can help ensure strategic wealth preservation, tax-efficient asset division, and robust retirement planning. Women should ensure pension entitlements and investment portfolios are equitably considered in divorce settlements. Finding an adviser who understands long-term goals and risk tolerance is key to successful wealth management.

Include Pensions in Financial Planning

Pensions are often overlooked in divorce settlements, with only 13% of individuals considering them when dividing assets. ⁷ Given that, generally speaking, a woman’s pension pot is typically lower than that of their male counterpart, equitable financial planning is essential. Reviewing pension entitlements, consolidating scattered pension pots, and maximising employer contributions can significantly strengthen long-term financial security. Women should also take advantage of pension tax relief and explore investment strategies aligned with their retirement goals.

Define Your Financial Goals

Setting clear financial objectives, whether home ownership, early retirement, business ownership, or philanthropy, enables structured investment and wealth accumulation. Aligning investment strategies with personal values and life goals fosters greater financial resilience. Women should regularly revisit financial plans to ensure they remain on track and adjust financial plans to reflect evolving priorities.

Build a Support Network

Financial empowerment is not a solitary journey. A 2024 Fidelity Investments study found that 55% of women feel overwhelmed by their finances, and 48% are embarrassed by their lack of investment knowledge. ⁸ Engaging with financial networks, mentorship programmes, or female-focused wealth management communities can provide critical insights and guidance. Women tend to work best with investment professionals recommended by trusted peers, helping them gain confidence in their financial decisions.

At MASECO we are proud to host our annual female-focused event, whereby we focus on the creation of a network for our female clients, to foster strong relationships, increase confidence when it comes to financial literacy, and provide valuable insights based on topics that our clients tell us they would like to learn more about.

By implementing these networks and financial strategies, women can navigate their financial futures with confidence and resilience. Financial independence is more than an aspiration; it is a tool for empowerment, enabling women to secure their futures and navigate life’s uncertainties with clarity and control.

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