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The gender pay gap for £100k+ earners won’t close until 2068 - another 48 years

According to our research and calculations, the gender pay gap for people earning over £100k won’t close for another 48 years. In spite of on-going media attention, no progress has been made in closing the gap since last year.

Men still make up over three-quarters of the highest earners in the UK with 680,900 of the 857,800 people who earned

Women are absent from executive roles

This wide gender pay gap is mainly caused by the absence of women in the top roles of UK companies. The majority of executive positions in large businesses are held by men, with only 27% of Directors at FTSE 250 companies being women. This is a particular issue in high-paying sectors, such as financial services.

Another factor is that women are far more likely to take time off from their career to start a family, which can disrupt their career and salary progression. Some women returning from maternity leave see their responsibilities reduced. This means that their pay and promotion opportunities are negatively affected as a result.

Introducing an element of risk to portfolios could increase returns

As a result, it is vitally important for women to put aside a chunk of their earnings and invest them, so they can make up for any lost income.

When investing, women may want to consider whether their risk appetite allows them to introduce some higher-risk-higher-return investments to their portfolio, so that they can maximise their savings.

This is particularly important for those thinking long-term, as making their money work harder could help close any gender gaps that arise during retirement.

There are a range of products that aim to beat inflation and traditional savings rates, one is our Innovative Finance ISA. This offers a range of options to suit different investors, all of which are backed by UK property. Investing places your capital at risk and IFISA’s are not cash savings accounts, so have a different risk profile to traditional cash ISAs. To safeguard against not being covered by the Financial Services Compensation Scheme easyMoney employs a manual credit committee with stringent lending criteria that ensures all loans are secured by a legal charge over UK property at a maximum 75% loan-to-value.

Written by The easyMoney Team

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