Closing The Gap: small steps to building financial security
· Posted on: June 4th 2025 · read
Insight written by Cindy Holt-Julie, Senior Technical Support
While women today earn more than previous generations, the legacy of historic disparity has left a significant impact on their financial stability and independence.
Although the pay gap is reducing, it has set women back in their savings and retirement planning.
The gender pay gap is the outcome of economics, cultural, societal and educational factors. Even today, factors such as childcare affordability hampers mainly the woman’s ability to get back into work, which in turn causes sole breadwinners in a household, or most of the income being from one party.
The UK government is working to end the gender pay gap within one generation. One way they are doing this is by making it compulsory for gender pay gap reporting, which in turn should promote pay transparency, which should uncover the causes of gender pay gap inequality.
Facts and figures*
- Among full-time employees the gender pay gap in April 2022 was 8.3%; this was 7.7% in April 2021 and 9.0% in April 2019 (pre-coronavirus (COVID-19) pandemic); however, we recommend looking at the longer-term trend.
- There remains a large difference in the gender pay gap between employees aged over 40 years compared to those aged below 40 years.
- Compared with lower-paid employees, higher earners experience a much larger difference in hourly pay between the sexes.
- The managers, directors and senior officials' occupation group has experienced the largest fall in gender pay gap since the pre-coronavirus pandemic April 2019 figure, especially for those aged 50 and over; this group has previously been identified as having a notable impact on the pay gap.
- The gender pay gap is higher in every English region than in Wales, Scotland and Northern Ireland.
* Source: Office of National Statistics 2024) Over the coronavirus (COVID-19) pandemic period, earnings estimates were affected by changes in composition of the workforce and the impact of the Coronavirus Job Retention Scheme (furlough) making interpretation difficult; also data collection disruption and lower response rates mean that, for 2020 and 2021, data were subject to more uncertainty and should be treated with caution; we would encourage users to focus on long-term trends rather than year-on-year changes.
Small steps to build financial security
Money can be tight; however, the smallest steps can help get women back on track with their savings.
Below are a few simple solutions that could benefit your future, be it for retirement, or putting in place a savings plan for those rainy days:
Pension Contributions:
- Most employers are required to pay in to a pension on your behalf, with you also contributing a proportion of your salary. Increasing your personal pension contributions by just £50 per month could give you additional savings of £62.50 per month, with basic-rate tax relief being added by the government.
Tip: Many employers offer to match additional contributions - check your workplace pension policy to make the most of it.
ISA Savings:
ISAs are a very tax efficient way of saving. Individuals aged 18 and over have an annual ISA allowance of £20,000 per tax year.
You can choose between:
- Stocks & Shares ISAs – for potentially higher growth, though with some risk.
- Cash ISAs – ideal if you prefer low-risk, interest-bearing savings.
Tip: Most banks offer ISAs with various interest rates and minimum savings amounts from £20 per month.
Empower yourself:
- For a healthy work/life balance, choose a company that encourages staff to be inclusive, have constructive policies for flexible working, shared parental leave, paternity leave and a positive culture for their staff.
- Women are statistically less likely to invest compared to men, often due to lack of confidence rather than capability. Consider reading up on beginner investment strategies or speaking with a financial adviser.
Tip: Gaining knowledge is a powerful step toward financial independence.
Final word…
While any change takes time, individual financial empowerment starts now, with small, consistent steps like increasing pension contributions or opening an ISA.
By taking control of their financial journeys, women can begin to close the wealth gap and build lasting security for themselves and future generations.
We hope the information outlined above will highlight the ongoing disparities which still affect woman in 2025, what the government is trying to achieve, and a snapshot into how a little each month could assist your future and help your financial independence.
MHA Wealth can help
Our financial advisors can help you create an effective financial plan that works with your personal circumstances.
If you're unsure where to begin, please speak to your usual advisor or contact a member of the MHA Wealth team, and we’ll be happy to assist you.
Important Information
MHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (1916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
This communication is for general information only, is a marketing communication, and is not intended to be individual investment advice, a recommendation, tax, or legal advice. The views expressed in this article are those of MHA Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk.
This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. You are therefore recommended to seek professional regulated advice before taking any action.
MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at https://www.mha.co.uk/about-mha-group
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