In recognition of International Women's Day on 8 March, we’re looking at the progress we’ve made so far to make life and money fairer for women - then we’re looking forward at the work we still need to do.
Not too long-ago finance and investment was thought of by some as the sole domain of men wearing suits in stuffy offices. The jargon was confusing, and finances were left to in some cases (you guessed it) the man of the house.
Today things are more equal. FSC research shows that 66% of women correctly answered three or more financial literacy questions, compared to 57% of men, demonstrating a strong understanding of key financial concepts such as investment strategies and risk diversification.
However, despite their financial capability, women are less confident in their financial decision-making.
This International Women’s Day we’re celebrating the progress we’ve made - and looking forward to the work we still have to do together to close that gap.
1. The gender pay gap has halved (but it still exists)
Back in 1998 when Stats NZ started recording it, the gender pay gap was 16.3% - fast forward to 2025 and it’s almost halved to 8.2%. This is incredible progress, but obviously more needs to be done to close the pay gap to zero.
In a recent article we discussed what needs to be done by employers to keep closing the gap. Pay transparency is one step in the right direction, but there are more.
“Employers need to conduct regular pay audits, address biases in recruitment and promotion, and provide clear pathways for career advancement. Collaboration across industries, as well as partnerships between government and private sectors, will be essential to achieving these goals" according to our recent article.
2. More women are working in finance (but are still outnumbered)
Before the 1900s women did not work in the finance industry. After that, those who did, began to start in entry-level roles, and then slowly progressed and advanced to occupy senior positions.
Today women still only occupy 22 per cent of all finance jobs worldwide, but there’s progress happening. Women are expected to occupy 36% of next generation finance roles from 2030 onward, according to Deloitte.
What’s the solution going forward? Workplaces need to consider gender diversity when hiring candidates and promoting workers. Pay transparency needs to be improved, so that women aren’t underpaid for doing the exact same work that men do, and more women need to be attracted into education pathways in finance.
3. Women as better investors
A 2021 study by US financial services giant, Fidelity Investments, looked at the average returns of over 5 million investment accounts over ten years. They found that over that time women’s accounts outperformed men’s accounts by an average of 0.4%.
That may not seem like much but over a lifetime of investing that little difference can add up.
Despite that, thanks to the gender pay gap and other structural inequities, women tend to have lower KiwiSaver balances. They’re contributing 36% less to their retirement savings accounts - and their balances are on average 25% less.
This is a symptom of an unequal system, which has also contributed to some women’s lack of confidence when it comes to investing.
4. Closing the gap together
We’re heading in the right direction according to many metrics, but gender financial inequities are still rife - especially in the financial services industry.
And we believe this isn’t a problem for women, it’s a problem for everyone. After all, how can we all prosper, when half the population has a higher likelihood of being paid less, and retiring with less?
So, this Women’s Day we’re calling on everyone - women, men, politicians, businesses - and we’re asking. What can you do to help close the gap?
Disclaimer:
This ‘Women's Day: Celebrating the progress we've made & the work to do’ blog is general information only. The views and opinions expressed do not necessarily reflect those of the FSC. It is not intended to constitute legal or financial advice and does not take your individual circumstances and financial situation into account. We encourage you to seek assistance from a trusted financial adviser, legal or other professional advice.
The names of any third parties are additional resources that you access at your own risk and the FSC takes no responsibility for any third-party content.
The FSC and its employees make no express or implied representations or give any warranties regarding this blog, and we accept no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in this blog.
March 2025.
