Hidden cost of women’s careers and why the system needs to change

When we talk about women and work, one issue still doesn’t get the attention it deserves: the long-term financial impact of the choices women make - or have to make - throughout their careers.​

It’s something I talk about often with employers when I travel across the country. And the reason is simple: even after more than 20 years of research through the Scottish Widows Women and Retirement Report, women are still behind financially.​

That’s why Anthropy26, set against the unique backdrop of the Eden Project and bringing together some of the UK’s most forward-thinking voices, felt like the perfect place to shine a strong light on it. ​

Among many conversations, one in particular stayed with me. In discussion with Women in Work, an organisation we work closely with, we explored the realities of today’s workplaces and how they shape women’s ability to build wealth.​

For many women, careers don’t exist in isolation. They’re shaped by childcare, health, and wider family responsibilities. ​

These realities influence decisions, whether to take a career break, reduce hours or pause pension contributions. Over time, those decisions compound, shaping financial security, opportunity and independence across decades.​

While progress is being made, the gap is still significant. There is still a gender pay gap and an even larger gender pension gap, with men retiring on average with £113,000 more.​

Is the gender pension gap inevitable?​

The encouraging news is that the gender pension gap isn’t inevitable. It is narrowing, albeit slowly. International data from the OECD shows countries like Iceland and Estonia have significantly smaller gaps, showing what’s possible. But in the UK, closing the gender pension gap could take another 20 years. That wait for equality isn’t acceptable.​

But this isn’t just about pensions. It reflects a much broader structural challenge that cuts across workplace design, public policy, women’s health, and ultimately fairness. If we’re serious about creating a more equitable future of work, awareness is only the starting point. What’s needed is sustained, collective action.

So what needs to change?​

First we need to focus on the moments that matter most, from those just starting out in the workplace to those navigating mid-career pressures or planning for later life.​

Employers have a crucial role to play. This can include continuing pension contributions during parental leave, and promoting financial decisions at key transition points, such as returning to work or reducing hours. Small interventions at the right time can have significant long-term impact. ​

Individuals also need clearer, more accessible tools. Digital tools such as the Career Break modelling feature in the Scottish Widows app, can help people understand the financial impact of their decisions and plan ahead with greater confidence. ​

Communications matter too. Using simple, clear language, and meeting people where they already are, including through social media, can help more people engage with their financial future in a way that works for them. ​

Partnerships play an important role. Initiatives such as Women in Work create space for open, honest conversations and, but more importantly they help turn those conversations into practical change.​

This isn’t about telling women what they should do. It’s about ensuring they have the right information, support and environment to make informed decisions.

Change on the way​

I often think about all of this across three generations: my mum, me, and my daughter.​

When I had my daughter, working part-time felt like the only viable option. What I didn’t fully appreciate was how that decision would affect my long-term financial independence. It’s a story many women will recognise.​

My hope is that my teenage daughter grows up in a world where she is equipped with the knowledge and confidence to make informed decisions, and where the system around her supports those decisions. ​

She’s already finding out about pensions while in a part-time job, using apps to manage her money and making good choices about planning and budgeting. ​

But real progress will only come when we stop asking women to adapt to the system and start building one that really works for them.​