A study has found that women believe they need to earn a significantly higher amount than men in order to be considered ‘rich’
A survey of 2,000 adults revealed that women believe they need to earn an additional £40,000 compared to men to be seen as wealthy. Many women only consider themselves ‘rich’ if their annual income reached £232,000, while men set the threshold at £193,000.
However, the definition of ‘wealth’ also varied between genders, with a higher percentage of women associating early retirement (54% vs 41% of men) and smart investments (53% vs 42% of men) as indicators of success.
Furthermore, women are also more likely to link wealth with going on foreign holidays (53% vs 42%) or employing a cleaner (28% vs 22%), according to the HSBC study.
Financial psychotherapist Vicky Reynal explained: “Women can feel more financially vulnerable because of the gender pay gap, career breaks due to maternity leave or caregiving, and the impact of working fewer hours, which likely explains why they set a higher income threshold for wealth.”
Among six-figure earners, however, this trend flips with women believing £559,000 defines wealth, while men cite a significantly higher £781,000.
Vicky says this is down to the fact that, “successful women may feel they have outperformed their peers, while men are more likely to compare themselves to ultra-wealthy individuals in their network, inflating their perception of what it means to be wealthy.”
When it comes to financial goals, Vicky explained women have a long-term outlook on financial security, driven by both historical and societal influences. This leads them to set more ambitious financial targets which focuses on saving and investing to ensure financial stability.
This is reflected in HSBC’s Your Money’s Worth. report which shows nearly a third of women have their sights set on early retirement, while others are focused on paying off the mortgage or growing their rainy-day funds.
The report also shows optimism among women about hitting these financial milestones, with eight in ten confident that the goals they’ve set are achievable. However, not all women feel they are on target for their goals.
While 43% of high earners feel they’re on the right path, just 19% of those with lower income feel the same. For 54% of those earning over £100,000 investing was a key to building that wealth.
Nearly half of high earners invest regularly, contributing 8% more monthly than their male peers.
HHSBC’s Christopher Dean said: “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 added it was important to recognise the role that financial institutions play in helping narrow the gender wealth gap and in supporting women with making the right decisions about their money.
“Providing tailored support including access to digital tools, educational resources and if applicable, financial advice, is key in helping bridge the gap further,” he said.
HSBC also emphasised its internal push for gender equity, with its wealth advisory team achieving a 50/50 gender split.
VICKY’S TOP TIPS TO 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.