Research shows men and women view ‘wealth’ differently (Image: Getty Images)
A recent report by HSBC has revealed that women believe they need to earn an additional £40,000 annually compared to men to consider themselves affluent.
The study found that women perceive an annual income of £232,000 as the benchmark for being ‘wealthy,’ while men set the bar at £193,000.
The concept of wealth also varies between genders. A higher percentage of women regard early retirement (54% vs 41% of men) and smart investments (53% vs 42% of men) as significant indicators of success.
Furthermore, women are more likely to equate wealth with taking foreign holidays (53% vs 42%) or employing a cleaner (28% vs 22%), according to the report.
Financial psychotherapist Vicky Reynal has highlighted the challenges faced by women when it comes to financial security, stating: “Women often feel financially vulnerable due to the gender pay gap, career breaks for caregiving, and part-time work. This likely leads to their higher perception of wealth.”
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But she notes an interesting shift among high earners, as women consider £559,000 to be defining of wealth, whereas men aim for a substantially more at £781,000.
According to Vicky, this discrepancy arises because “women may compare themselves to their peers, while men benchmark against ultra-wealthy individuals, inflating their perception of what it means to be wealthy”
Vicky further commented on the financial aspirations of women, saying, “Women’s long-term focus on financial security, rooted in historical and social factors, shapes their ambitious goals. They prioritise saving and investing to achieve stability.”
Evidence of this mindset is apparent with 29% of women targeting early retirement, 25% focusing on clearing mortgages, 23% saving for emergencies, and 18% investing in home improvements.
Moreover, Vicky outlined that eight in ten women believe they can realise their financial objectives. However, there’s a divide in confidence levels; 43% of high-earners are confident they’re on course, but just 19% of all women feel similarly assured.
High-earners say investing has helped their money grow (Image: Getty Images)
Among those women earning over £100,000, a significant 54% attributed investments as key to amassing wealth, with nearly half engaging in regular investment strategies, exceeding men’s contributions by 8% monthly.
Christopher Dean of HSBC commented: “The fact that high earning women are now saving and investing more on a monthly basis than men shows that when the barrier of lower income is removed, women set and meet ambitious financial goals.”
He emphasised the importance of financial institutions in aiding the reduction of the gender wealth gap and supporting women to make informed decisions about their finances.
“Providing tailored support including access to digital tools, educational resources and if applicable, financial advice, is key in helping bridge the gap further,” he remarked.
HSBC also highlighted its commitment to gender equality within its ranks, boasting a 50/50 gender split in its wealth advisory team.
The bank’s report, , offers additional insights from the study.
TOP TIPS FROM VICKY REYNAL TO HELP WOMEN GROW FINANCIAL CONFIDENCE
1. Challenge implicit gender bias:
Challenge any gender biases around money – and consider some of those could be internalised. Financial competence is entirely a learned skill. This is reflected in the fact HSBC UK research has found that women are saving and investing more than men in a number of cases.
2. Know your strengths (and limits):
Everyone has financial strengths, and the simple act of acknowledging these can help you to build confidence and resilience. However, even strengths have downsides, so it’s important to be aware of those too: for example, careful saving can become over-cautiousness, limiting growth. Work to strike a healthy balance.
3. Reframe “weaknesses” and take action:
Avoid self-defeating narratives. Instead, identify specific habits to change, and set actionable goals. Use budgeting tools, seek investment education, or build a savings pot for security. Growth comes from action, not self-judgment.
4. Close the investment confidence gap:
Financial management isn’t innate, and taking the time to increase your knowledge will also build confidence. Seek out information and resources and don’t let shame prevent you from seeking help (including financial advice and wealth management tools, which can be found on the HSBC UK website). Asking questions is what will make you financially savvy. Avoidance won’t.
5. Shift to an “abundance mindset”:
Fear and financial insecurity is fuelled by several things: focusing on what we don’t have (a scarcity mindset), preoccupying ourselves with factors out of our control, and comparing ourselves to others.
Cultivating an “abundant mindset” doesn’t mean ignoring financial realities, but rather prioritising agency over helplessness. Focus on actionable strategies: reallocating funds to higher-interest accounts, adjusting investment approaches, or creating additional revenue streams. Taking control—however small the step—creates hope and has real financial benefits.
6. Build financial wellbeing habits:
Schedule time to manage your money, just like you would for your fitness or health. Dedicate time each month to review priorities, assess tools, and explore benefits. Small achievements can build confidence.