Why the gender wealth gap is still so stubborn – and what it means for women’s wellbeing

OlhaTsiplyar/Shutterstock Inequality in wealth between men and women has not always received the same attention as similar disparities in employment and earnings. This is perhaps because wealth – things like property, savings and investments – is seen as a private matter. This issue has become known as the “gender wealth gap” and it is a damaging and persistent feature of the economy. This gap in wealth appears to be growing rather than shrinking. Back in 2019, the UK government published a gender equality roadmap that highlighted the gender pension gap as a key issue. But it did not mention inequalities in other forms of wealth, such as personal investments in stocks, bonds, property and business wealth. And a recent gender equality strategy from the European Union emphasised the need for women to “thrive” in investing or entrepreneurship, but did not even mention the gender wealth gap. Despite its marginal position in the debate, the gender wealth gap matters enormously for women and girls, shaping their income, financial independence and long-term security. Estimating the size of the gap is made difficult by the lack of data – most data sets collect information on wealth at the household rather than the individual level. But we know from our own research involving disaggregated data from countries like Germany that assets are often not shared or equally distributed between members of the same household. Why your personality might be affecting your salary – and how it shapes the gender pay gap

According to a 2025 estimate from feminist thinktank the Women’s Budget Group, the gender wealth gap in the UK stood at 21%. This was higher than the gender pay gap, which was estimated to be 13%. There are also differences in the type of assets held by men and women, with men more likely to hold riskier assets including investments and business wealth. These tend to generate higher returns. And over the course of a lifetime, gender disparities in wealth accumulation grow, peaking at retirement age. The causes of gender wealth gaps can be mutually reinforcing. Women’s lower engagement in paid work (lower employment rates and shorter hours) is a trend that is closely linked to their greater role in unpaid care and domestic work. This is a key factor in the gender wealth gap. So policies and initiatives to reduce gaps in employment and pay will certainly help. The confidence question However, research also points to other factors at play. A consistent finding across countries is that women have lower rates of financial literacy than men and lower confidence in their financial knowledge and skills. A prime example of this showed up in an experimental study from the Netherlands. This found that women were more likely than men to select the “don’t know” option on survey questions about financial knowledge. But when this option was removed, they often selected the correct answer. The drivers of this low confidence partly reflect differences in early socialisation, with boys on average receiving more pocket money than girls. Women are thought to be more risk-averse when investing, which could be a result of lower financial confidence (as well as of having less income to invest overall). Women on average also receive less wealth in the form of inheritance and gifts than men, particularly at younger ages. And timing matters, due to the way in which wealth compounds over the years. Crucially, women on average have less business wealth than men – and female founders face greater barriers when trying to secure funding for their companies, for instance.

It’s true that wealth may be shaped by individual choices that are beyond the purview of governments and regulators. But these choices are not made in a vacuum. Initiatives can shape the context in which decisions are made, paving the way towards a more equal future. Large-scale, accessible programmes are needed to increase financial literacy and confidence, including in schools. Greater representation of female high-earners and employers could also encourage an investment ecosystem where women would feel more welcome. According to a European study, female CEOs tend to employ more women – but drawing women into higher-paying sectors needs to start early at school level too. There is no magic bullet that will dramatically reduce the gender wealth gap quickly. But there are things that can be done, and there is a compelling need to act. Without targeted initiatives, women who break down the workplace glass ceiling to become high achievers and high earners could find that they are still disadvantaged compared to their male peers.

Madeline Nightingale led a project funded by the European Institute for Gender Equality (EIGE), which examined gender wealth gaps. Elizabeth Kadar worked on a project commissioned by the European Innovation Council and SMEs Executive Agency (EISMEA), which mapped the gender investment gap in Europe.