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Infinity Financial Solutions
September 24, 2025
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Hoxton Blog • Retirement Planning for Women: The Challenges and How to Prepare
International Equal Pay Day is a reminder that women often face unique financial challenges throughout their lives.
From earning less due to the gender pay gap to taking career breaks for family care, and living longer than men, women’s retirement savings are often stretched thinner.
This article explores the barriers women face in building a secure retirement and offers practical strategies to help them take control of their financial future.
Observed each year on 18 September, International Equal Pay Day is a reminder that the goal of equal pay for work of equal value remains frustratingly out of reach.
The consequences of this gender inequality have a lasting impact on financial planning for women, and more specifically, retirement planning. Globally, almost two-thirds of people over retirement age without a regular pension are women.
Let’s take a deep dive into the challenges that women face in planning for retirement.
The gender retirement savings gap is the difference between the retirement savings of men and women, reflecting the financial inequalities that accumulate over a lifetime and carry into retirement.
This gap arises from a combination of factors:
Lower Pay
According to UN statistics, women earn 77 cents for every dollar men earn for work of equal value – with an even wider wage gap for women with children. This gender pay gap means smaller contributions to pension schemes and personal savings, which compounds over time into a substantial shortfall at retirement.
Career Breaks
It is estimated that only 28 per cent of women employed worldwide get to enjoy paid maternity leave. In addition, women carry out at least two and a half times more unpaid household and care work than men, leaving them less time for paid work.
Time taken away from the workforce for maternity leave or to care for children and elderly relatives often results in missed contributions, lost compounding growth, and slower career progression. Even a few years out of the workforce can leave a noticeable dent in long-term retirement savings.
Longevity
Women on average live longer than men. While longevity is a positive in itself, it poses a financial challenge: retirement savings must stretch further, often to cover more years of living expenses, healthcare costs, and potential long-term care needs. Without careful planning, women risk outliving their savings, leaving them financially vulnerable in later life.
Investment Patterns
Research suggests women are more likely to adopt conservative investment strategies, prioritising safety and stability over higher-risk, higher-return opportunities. While this cautious, risk-averse approach can protect against losses, it may also mean that retirement funds grow more slowly and struggle to keep pace with inflation.
Over decades, this difference in investment behaviour can contribute significantly to the gender retirement savings gap. At the same time, studies also show women can be disciplined and patient investors, qualities that, if paired with a balanced growth strategy, can be turned into a strength.
Faced with these disadvantages, there are still many ways women can change their own retirement story. Taking proactive steps early on can make a significant difference in closing the retirement savings gap and building long-term financial security. Here are six practical strategies:
Time is one of the most powerful tools in retirement planning. Thanks to compounding -the process where returns generate further returns – even small amounts saved regularly in your 20s or 30s can grow into a meaningful nest egg by retirement age. Starting early also provides flexibility, allowing women to adjust contributions or investment strategies as life circumstances change.
If you’re lucky enough to have access to an employer-sponsored pension, make full use of it by contributing enough to unlock any matching contributions, which is essentially ‘free money’ towards retirement. Women working part-time or re-entering the workforce should also check their eligibility, as even modest contributions can accumulate significantly over time.
A cautious approach to investing may feel safe, but over the long term, avoiding growth assets can mean savings fail to keep pace with inflation. Allocating part of a portfolio to equities or growth-oriented funds can provide higher returns and help ensure retirement savings maintain their purchasing power. Striking the right balance between risk and return is key, and diversification across asset classes can reduce exposure to market volatility while supporting long-term growth. A professional financial adviser can help you achieve a balanced and diversified portfolio aligned with your situation.
Career interruptions for maternity, childcare or caring for parents are common and should be anticipated in financial planning. Setting aside dedicated savings before taking a break can help cushion the impact of missed contributions. Women might also consider maintaining contributions to retirement accounts during these periods, even if only at a reduced level, to keep compounding working in their favour. Planning ahead allows for smoother transitions back into the workforce and minimises long-term financial setbacks.
Unexpected health issues or critical illnesses can quickly derail retirement savings. Insurance products such as health, life and critical illness cover help safeguard personal wealth and prevent medical costs from depleting long-term savings. Having the right level of protection ensures that women can stay on track towards their retirement goals, even in the face of unforeseen challenges.
Every woman’s financial journey is unique. Speaking with a financial adviser can help create a tailored retirement plan that accounts for income, lifestyle goals, career plans, and family responsibilities.
Here at Infinity, powered by Hoxton Wealth, our consultants across Asia have a wealth of experience providing professional advice to expatriate women.
They understand the unique challenges they face and provide clarity on investment choices, tax considerations and protection strategies – so expat women can make confident, informed decisions about their financial futures.
This article first appeared on the website of Infinity Financial Solutions. The business has since been acquired by Hoxton Wealth.
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Infinity Financial Solutions
September 24, 2025
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