How hybrid roles and flexible working are widening women’s wealth gaps

Versatile working was meant to degree the gender enjoying discipline. Hybrid and distant roles have helped many ladies steadiness paid work with caring tasks who may in any other case have left the workforce.

However when breaking down flexibility by pay grade, a divide turns into clear.

Senior, higher-paid roles are nonetheless much less more likely to provide flexibility, whereas lower-paid and part-time roles usually tend to. Consultants warn it isn’t flexibility itself that’s the drawback, however the unequal means it’s distributed.

For Worldwide Ladies’s Day on 8 March, The Impartial appears at how unequal entry to flexibility – somewhat than flexibility itself – is shaping girls’s long-term monetary safety.

Flexibility concentrated on the backside

Dr Sara Reis, deputy director on the Ladies’s Funds Group, says the problem is structural. “The problem right here isn’t versatile work,” she says. “The dearth of entry to it in senior, well-paid roles is.

“Ladies nonetheless do 50 per cent extra unpaid care than males, and so usually tend to take up jobs that provide versatile working with the intention to higher mix their unpaid caring tasks with their paid job.

“However proper now, we see that flexibility is most of the time concentrated in lower-paid jobs with restricted development. That imbalance has penalties for girls’s earnings, pensions and long-term monetary safety, and gender equality extra broadly.”

In observe, many ladies go for school-hour or distant roles, whereas senior posts stay much less accessible.

The result’s a widening pay and pension hole.

The compounding pension impact

Jeannie Boyle, director and chartered monetary planner at EQ Traders, says even modest wage variations can snowball. “Decrease salaries imply decrease pension contributions,” she says. “Somebody incomes £100,000 over a 20-year interval can anticipate to build up a further £70,000 of their pension fund in comparison with somebody incomes £80,000.

“This assumes they’re each paying 5 per cent of their wage into pensions, which develop at 10 per cent a 12 months. What’s tougher to evaluate is how the upper wage connected to extra senior roles impacts the power to speculate for the longer term.”

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The hole widens considerably if larger earners improve contributions as their pay rises. “It’s solely when salaries begin to speed up that many individuals have the capability to make vital financial savings into pensions and ISAs,” Boyle says.

“When persons are promoted into senior roles, they discover they’ll afford to extend pension contributions. If the particular person incomes £100,000 a 12 months can afford to contribute 10 per cent into their pension, the hole after 20 years widens to over £350,000.”

The visibility penalty

Hybrid working has additionally altered office dynamics. Whereas flexibility can enhance work-life steadiness, it might scale back visibility – one thing that also influences promotion selections.

Boyle says: “Males, typically with fewer tasks at house, give attention to constructing the networks that assist them transfer into senior roles. They’re exercising affect by being within the room for the post-meeting chat, out there for after-work drinks, and accepting the invitation to look at rugby on the weekend.

“For ladies working at house or part-time round childcare, these alternatives aren’t out there. Ladies are discovering that competence will take them up to now of their careers, however it isn’t sufficient to achieve extra senior roles, and their careers can stall on the center degree.”

Each specialists stress that limiting versatile working isn’t the reply. “Doing that will solely make it tougher for girls to remain in work,” says Reis.

“The true problem is guaranteeing flexibility is genuinely out there throughout all ranges of seniority, and to take away stigma in order that individuals who work flexibly or hybrid should not penalised as a result of managers favour those that are most seen within the workplace somewhat than these delivering outcomes.”

She provides that versatile working is especially essential for disabled girls and people with persistent well being situations, for whom inflexible patterns is usually a barrier to employment.

The Employment Rights Act is increasing entry, however Reis argues extra could possibly be finished, together with a requirement for jobs to be marketed as versatile by default except not fairly possible.

Defending your long-term wealth

For ladies who select flexibility, or depend on it, proactive monetary planning issues.

“Employer help and engagement is essential to profession success in case you are working otherwise to most of your colleagues,” Boyle says. “Attempt to work for a female-led organisation with out the boys’ membership mentality.”

She additionally emphasises sustaining contributions the place potential. “Strive to make sure you are investing for the longer term, even when budgets are tight,” she says. “You could not have the ability to depend on an enormous wage uplift later to offer you extra financial savings capability.”

As Worldwide Ladies’s Day prompts reflection on financial equality, hybrid working presents each alternative and danger. Until flexibility is embedded at each degree, it dangers entrenching the very wealth gaps it was meant to shut.

When investing, your capital is in danger, and it’s possible you’ll get again lower than invested. Previous efficiency doesn’t assure future outcomes.

Learn The Impartial’s affect listing for Worldwide Ladies’s Day 2026 right here.