Career breaks, longer lives, lower pay: Why women’s finances need special planning

Financial planning for women needs a separate playbook because their financial journeys are often different from men’s. Women may face career breaks, longer life expectancy, and a gender pay gap, which can impact savings and retirement planning. Traditional advice doesn’t always address these realities. A tailored approach helps women manage money confidently, plan for the unexpected, and build long-term security. Financial independence is not just about money—it is about choice, freedom, and the power to shape one’s future.

"A different approach doesn't mean different products, but rather a plan that accommodates these life stages. It’s about building flexibility into the financial plan, ensuring continuity during career pauses, and aiming for a larger retirement corpus. This isn’t just a “women’s issue.” Financial planning should be a joint responsibility between partners, especially when life decisions impact both. When you account for aspects such as income patterns, caregiving roles, and longevity, the need for a more personalised strategy becomes clear," said Saurabh Bansal, Founder, Finatwork Investment Advisor, a SEBI RIA (Registered Investment Advisor).

Factors leading to a different playbook

Career breaks can create gaps in earnings and retirement savings, making it important to plan investments that continue to work in the background. Life expectancy is another big one. There is a study that women often outlive men, which means their retirement savings need to last longer. Then there's risk appetite. Women are often seen as conservative investors, but that’s not the full story. Many simply want to understand the investment before committing. Once confident, they tend to be disciplined and goal-oriented. The ideal plan for women balances growth and safety, adjusts for income fluctuations, and ensures long-term stability. These factors, when thoughtfully addressed, can make a big difference in wealth creation and security.

Amit Suri, CFP®- Founder of Aum Wealth, said, "Career breaks are a big one. Many women step away from work for a few years—sometimes more than once. So, the financial plan needs to account for periods with no or lower income while still staying on track."

"Then there’s life expectancy. Statistically, women live longer, which means they need a bigger retirement fund. And risk appetite plays a role too. In my experience, women tend to be more cautious at the beginning. But once they feel informed and confident, they become long-term, consistent investors—and often more loyal than their male counterparts," added Suri.

What you should do

Even if you are not earning actively, know where the money is going, how it’s invested, and what it’s meant for. Learn about different types of investments and what diversification means.

"Have some income of your own—maybe through a side hustle, freelance gig, or passion project. Also, don’t shy away from financial conversations at home. Women often focus more on the family’s future than on themselves, especially children’s education and well-being. But securing your own future is just as important," said Suri.

"If possible, women should build a personal emergency fund and start investing in their own name. Even small steps like a SIP or a recurring deposit can add up over time. If full-time work is on hold, side incomes—like freelance work or consulting—can help maintain financial confidence. Independence also means having a say in financial matters. Being part of the conversation at home ensures that they are not just saving, but shaping your financial future," said Bansal.