Women believe they need to earn £40k more than men to be considered wealthy

WOMEN believe they need to earn £40,000 more than men to be considered wealthy, according to research.

A poll of 2,000 adults found women feel they will achieve ‘rich’ status when they take home £232,000 a year.

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Men, however, set the bar lower, at £193,000.

Among those already earning six figures, the numbers skyrocket – with women needing £559,000 a year to feel wealthy, while men push it even higher to a staggering £781,000.

What defines ‘wealth’ also differs between the sexes, with more women viewing early retirement (54 per cent compared to 41 per cent of men) and smart investments (53 per cent compared to 42 per cent of men) as key markers of success.

Women are also more likely to associate wealth with jetting off on holidays abroad (53 per cent vs. 42 per cent) or hiring a cleaner (28 per cent vs. 22 per cent), according to the HSBC study.

Financial psychotherapist Vicky Reynal said: “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.

“Interestingly, the trend reverses among high earners – 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.”

The research also found women are setting ambitious financial goals, with 29 per cent working towards early retirement.

More than a quarter (27 per cent) aspire to take more holidays abroad, and 25 per cent hope to pay off their mortgage.

While 23 per cent want to prioritise saving for a rainy day, and 18 per cent plan to put their money towards home upgrades.

However, the most common barrier to achieving financial goals for women is low income, with 33 per cent ranking this as their main challenge, compared to just 25 per cent of men.

And only 19 per cent of women feel they are on track to meet their financial goals, although 83 per cent believe their targets are achievable.

Among high-earning women, 43 per cent report being on target.

Vicky Reynal added: “Women often prioritise financial security more than men due to historical and societal factors, which leads them to set ambitious financial goals centred around long-term stability, and when possible, save and invest to fulfil these objectives.”

It also emerged the gender wealth gap may be closing among higher earners, with women earning more than £100,000 a year now saving and investing, eight per cent more than men each month.

While just 13 per cent of women in the general population have investments, nearly half of high-earning females (48 per cent) invest regularly.

As a result, 54 per cent of these say investments are a key differentiator of wealth.

Christopher Dean, managing director of premier banking and wealth management at HSBC UK, which has outlined further findings in its Your Money’s Worth report, said: “The fact 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.

“It’s also 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.

“We are also really proud to support women within our own industry, where wealth remains male-dominated, as our team of wealth advisors is made up of a 50/50 gender split.”

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