While gender equality has come a long way in Ireland, there is still a fair distance to go.

Indeed, it is incredible to think that only 51 years ago, in 1973, the marriage bar – a law that prevented married Irish women from working in the public sector – was removed, allowing thousands more women to earn their own money. And it was only in 1976 that Irish women were able to own their home outright without written consent from a man.

These leaps and bounds in women’s rights, while fantastic, mean that prevailing inequalities can sometimes lie under the surface and are not often discussed. But our country still has a gender wealth gap that prevents many women from building a secure financial future.

So, whether you’re a female business owner, or a male business owner looking to learn more about the issue of gender inequality, keep reading to learn about Ireland’s gender wealth gap and how we can work together to eradicate it.

Ireland has an hourly gender pay gap of 11.2% in 2024

According to the recent gender pay gap report by PwC Ireland, which surveyed 550 businesses, the mean hourly pay gap between men and women in Ireland stands at 11.2%, down from 12.9% in 2023.

The latest available data suggests that in the EU, as of 2022, the pay gap stood at 12.7%. In the UK, the full-time wage gap was 7.7% in 2023, the Office for National Statistics (ONS) reports.

According to the Chartered Institute for Personnel Development (CIPD), under the Gender Pay Gap Information Act of 2021, Irish businesses with more than 250 employees (150 from 2024 onwards) are required to report their own gender pay gap each year, as well as the measures they’re taking to close it.

You could be wondering: “If it’s illegal to pay a man and woman differently for performing the same role, why is there still a gender pay gap?”

This has to do with the following factors:

• Fewer women work in higher-paying managerial roles. The Central Statistics Office (CSO) says that in 2023, 25% of Board Directors in Ireland were female. 19% of CEOs were women, and just one-quarter of enterprises had 40% female representation on their Board of Directors.
• Many women take career breaks to have children, with some re-entering the workforce in part-time or lower-paying roles. According to the Gender Pension Parity Report from Irish Life, women are out of the workforce for an average of six years, reducing their career opportunities overall.
• Research shows women have a lack of confidence in asking for a pay rise. A Euronews report from March 2024 finds that only 43% of women have asked for a pay rise during their entire career. While there seems to be little recent data around how many men have done the same, it’s safe to say that with less than half of women having the confidence to ask for more at work, this could contribute to the gender pay gap.

If you’re a business owner, it’s crucial to understand the root causes of the gender pay gap. It’s easy to think you’ve “done enough” to support your employees by simply setting clear pay standards – but sadly, the issues go deeper than this, as the data shows.

On the other hand, if you’re a woman looking to improve your personal finances and to achieve parity with your male peers, it’s easy to feel pessimistic. Luckily, there are helpful ways you can try to improve your personal situation (more on this later).

There is a huge disparity between the pension wealth of men and women

In addition to the gender pay gap, there is another (often underdiscussed) issue facing Irish women today: pension inequality.

The Irish Life Gender Parity Report 2024 breaks down the key data you need to know:

• In the private sector, women’s pension wealth is, on average, worth 22% less than that of their male peers.
• To make up this shortfall, women would need to work an additional eight years if they wanted the same standard of living in retirement as men.
• As you read earlier, women take an average of six years out of work to raise their families, which is a significant factor contributing to the gender pension gap.
• While men and women both join pension schemes at an average age of 34 years old, men contribute a larger amount over the course of their careers.
• Just 12.5% of women choose their own investments within their pension, versus 17.1% of men.
• Women are more likely to experience age-old poverty than men (16.6% versus 11%).

The combination of lower median salaries, time out of the workforce, and a lack of financial confidence contribute to this gender pension gap. Yet sadly, for retiring women, the effects of these factors could be severe.

Indeed, as the report reveals, Irish women today have an average life expectancy of 84, meaning that their retirement could last at least 20 years. Without a substantial pot of wealth to fund this, women could be more vulnerable to financial hardship, particularly in very old age.

Unbiased, goal-oriented advice could help to close the gender wealth gap

If you are a female business owner who wants to achieve more with your personal finances, you might feel as if you’re swimming against the tide.

To begin your journey towards financial freedom, you could:

• Ensure you’re contributing as much as you can into your personal pension (doing so is tax-deductible, too, offering an added benefit)
• Pay yourself the salary you deserve
• Discuss any career breaks you plan to take with your partner, who can help you remain financially stable by paying into your pension on your behalf
• Learn more about investing and begin building a portfolio with the help of a professional – you can download our free guide to help you get started today!
• Begin working with a financial planner so you can form a reliable long-term plan.

Here at iQ Financial, we specialise in working with business owners who want to secure a bright future for themselves and their families.

We’ll look at your personal circumstances and offer unbiased advice tailored towards your goals. If you’re a woman who is worried about “catching up”, we’re here to provide guidance on how to do so.

To learn more about working with us, get in touch today.

Email us at clients@iqf.ie, or call 353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.