Women typically think the earnings trigger at which someone is considered “wealthy” is around £40,000 higher than the level at which men believe someone is well off, a survey has found.
On average, women think someone needs to earn at least £232,000 to be considered wealthy, while for men the threshold is lower, at £193,000, according to the research, released by HSBC UK ahead of International Women’s Day on March 8.
But researchers found the gender trend was reversed among people on higher salaries.
Women earning over £100,000 typically considered £559,000 as the annual income needed to be considered wealthy, whereas men earning £100,000-plus typically thought a significantly higher earnings amount was needed to be thought of as wealthy, at £781,000.
The most commonly-cited barrier to achieving financial goals for women was low income, with a third (33%) saying that the main challenge they faced was not earning enough, compared with a quarter (25%) of men.
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.”
Aside from having investments, the most popular indicator of wealth was the ability to retire early, which was a leading marker for 54% of women, compared with 41% of men.
Christopher Dean, HSBC managing director, premier banking and wealth management UK, said financial institutions can play a role in helping to narrow gender wealth gaps by providing access to digital tools, educational resources and, if applicable, financial advice.
YouGov surveyed more than 2,000 people across the UK for the research in December 2024, made up of more than 1,000 members of the general population and more than 1,000 people earning £100,000-plus.
Here are some tips from Vicky Reynal for building wealth:
1. Challenge any gender biases around money – and consider some of those could be internalised. Financial competence is a learned skill.
2. Know your strengths and limits and work to strike a healthy balance.
3. Identify specific habits to change, and set goals. Consider using budgeting tools, seek investment education, or building a savings pot for security.
4. Schedule time to manage your money, just like you would for your fitness or health. Small achievements can help to build confidence.
