Recent data shows the gender pay gap is still alive and well. In 2025, women earn $0.83 for every $1 men make. This gap widens as women age, becoming $0.72 per $1 for women age 45 and older.
This pay gap can have a detrimental impact on women’s ability to build long-term wealth. Add to this the additional wealth-building challenges women face, and achieving long-term financial success can be an even larger uphill battle. Women typically have longer lifespans, which means they must save more than men to cover the costs of retirement and healthcare. Women are also more likely than men to take time away from work to care for children and/or aging relatives, which decreases their lifetime salary potential even further.
These disparities make it even more important for women to actively negotiate for higher pay and take steps to build wealth throughout their lifetimes. The following tips can help.
1. Know your worth.
The first step in negotiating for a higher salary is to do some research. Look up salary ranges for your position and industry, and gather information about your company’s compensation policies. This data can help you determine an appropriate salary range.
Once you have an idea of a salary range for your position, take time to consider how your skills and performance add to your value as an employee. Take stock of your accomplishments, skills, experience, and background. Write down any unique expertise you have and results you’ve delivered for the company. Use this information to establish a realistic salary goal, and be ready to articulate why you believe you deserve this pay increase.
In addition to negotiating your salary, consider also negotiating your benefits, such as life and health insurance, employer matching contributions to retirement, health savings account deferrals, etc. Negotiating for the best possible benefits can greatly benefit your family in the long run.
Also, don’t be afraid to ask for flexibility in your schedule, work-from-home options, professional development opportunities, and/or additional vacation days, if these benefits are important to you.
2. Be direct and confident.
It’s important to be up-front, direct, and confident when asking for a raise. Take time in advance to rehearse what you’re going to say when you negotiate. You’re more likely to be successful if you approach the conversation with confidence and provide data to support why you believe you deserve a higher salary. Be ready to provide quantifiable evidence to demonstrate how you add value.
Keep in mind that, in order to access this information, you’ll need to maintain an ongoing list of your accomplishments. Start a document or spreadsheet where you track your progress in real time. Doing so allows you to be prepared for discussions as they arise.
3. Save early and often.
Hopefully your salary negotiations are successful and result in higher pay. However, this doesn’t fix the challenge of planning for a longer lifespan. As of 2023, women’s average life expectancy is 79.3 years, while men’s is 73.5 years. That means women may need to plan for an additional six years of retirement and healthcare expenses. Consider what this means for a woman who’s trying to save for retirement. If she intends to live on $100,000 per year, she’ll need access to $600,000 more than the average man.
One of the best ways to plan for the added cost of retirement is by saving early and consistently throughout life. By starting earlier, women can take advantage of compounding interest, a powerful ally in any investor’s efforts to combat the long-term impact of lower wages.
4. Plan for time out of the workforce.
Women are more likely than men to take extended time out of the workforce. Often, this time away is to care for others, such as young children or aging relatives. In fact, women are five to eight times more likely than men to have employment affected by caregiver responsibilities.
Women can plan for time out of the workforce by implementing strong saving, investing, budgeting, and retirement planning strategies to help cover periods of lost income. A professional wealth manager can run projections based on various life expectancies and employment scenarios to help ensure you’re prepared to live a comfortable lifestyle long into the future.
Katie Stephenson, JD, CFP, is a Private Wealth Manager and Partner with Creative Planning. Creative Planning is one of the nation’s largest registered investment advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together, including investments, taxes, estate planning, and risk management. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.