Financial insecurity among millennial women isn’t just a statistic, it’s a far too common reality that’s often ignored. Recent surveys show that millennial women don’t feel as financially confident as millennial men. And in a world where financial independence is not only a goal but a marker of personal freedom, the fact that so many women feel financially insecure is both troubling and telling.
First, we need to examine why women feel financially insecure and what changes can be implemented to address it. Problems like the gender pay gap, career breaks for caregiving, the inequality of living costs and childcare – all need to be addressed on both the legislative and employer level.
In 2026, these problems can be addressed with some real-world solutions. It can be a turning point with the right changes. But first let’s examine why women are feeling financially insecure.
Why Are So Many Millennial Women Financially Insecure?
Most millennial women are financially savvy and experts at managing money. Yet, they struggle with managing expenses. Let’s examine why.
The Gender Pay Gap
Let’s start with the obvious: the gender pay gap. The ONS reports that women earn, on average, 7% less than men in full-time roles. That might seem little, but it adds up over the years. It’s not just about what women are paid today, but the long-term impact. Men start with higher salaries and, over time, accumulate more savings and investments. Women are constantly playing catch-up. And for women who take career breaks, often to care for children or elderly relatives, this gap widens even further. It’s no surprise, then, that women are feeling the pinch financially.
The pay gap doesn’t just affect income; it also creates a snowball effect that’s especially felt in retirement savings. Women are falling behind when it comes to pensions, too. FCA’s 2024 report found that women, on average, are saving 40% less for retirement than men. That’s £10,000 a year in pension savings that women don’t have. So, while men are investing in their futures, many women are left wondering if they’ll have enough to retire comfortably.
The Cost of Living and Childcare
Along with the pay gap, the cost of living and childcare adds up to the millennial women’s expenses. Women with families are constantly fighting this uphill battle. 62% of women feel overwhelmingly negative about finances, using “stressed,” “worried,” and “frustrated” about their financial situation. And it’s not surprising as rents rise, grocery prices go up and wages grow stagnant, meaning women are more likely to make sacrifices in their daily lives just to get by. Some are even skipping meals to ensure their children don’t go hungry.
But the hidden burden that many women face is childcare. According to Mintel, 45% of women feel financially worse off than they did a year ago, with many reducing spending on non-essentials like clothing and accessories. A huge part of that is the exorbitant cost of childcare, which often forces women out of the workforce or limits their working hours. It’s no surprise that so many women feel financially insecure.
Embed: The UK women dealing with a cost of living crisis
What Needs to Change in 2026?
With the widening financial gap, a number of changes need to take place in 2026 on the legislative, employer and societal level. Here’s what needs to happen:
Employer Initiatives
Employers have a huge opportunity to make a difference. It’s not just about offering flexible working hours or paid parental leave (although those are incredibly important). It’s about creating an environment where women are empowered to thrive. Companies need to provide more support for working mothers, not just in terms of time off but in creating an inclusive environment that doesn’t punish women for having families. More businesses should offer financial planning services and mentorship programs specifically for women. After all, the more women are educated about their finances, the more confident they’ll feel.
Better Financial Education
Women need better financial education. Not all resources currently out there, cater to women’s specific needs and challenges. Instead, programs that focus on financial literacy and planning, starting in schools and continuing through adulthood will be beneficial for women. Programs that focus on the unique financial needs of women, such as budgeting for families, planning for retirement, and managing debt will be highly useful for women.
Policy Changes and Support
Government support is crucial on this matter. Policies that support equal pay, affordable childcare and greater financial support for caregivers will make a world of difference. While the UK government has pledged to close the gender pay gap, it needs to do more to address the broader systemic issues that keep women financially insecure. Affordable childcare, tax breaks for families and better access to financial advice are all essential in the larger picture.
Financial Resources for Women
There are already some great resources available for women looking to improve their financial literacy and security.
- GOV.UK can help you determine which benefits and financial support you might be eligible for, including Universal Credit, housing benefits, and support for low-income households.
- MoneyHelper provides free impartial guidance on budgeting, saving, and investing.
- For those who want to go beyond general advice, readers can check out resources at PMW or consult a professional adviser to get guidance that reflects their own circumstances.
The more women are empowered with knowledge, the more control they’ll have over their financial futures.
Conclusion
Financial insecurity among millennial women is a complex issue, but it’s one that can be resolved with some effort. By supporting women in the workplace, providing better financial education, and implementing policies that address the root causes of financial insecurity, we can make real progress.
2026 could be the year that millennial women start to close the financial gap and gain the financial independence they deserve. But for that to happen, we all need to step up – employers, policymakers, and women themselves.
It’s time to take control of our financial futures and demand the change that’s long overdue.